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California may limit using jobs, school for insurance rates

Posted at 9:47 PM, Dec 23, 2019

SACRAMENTO, Calif. (AP) - California is proposing to restrict auto insurance practices that regulators say benefit those who have more money, more education and are white.

The state proposed regulations Monday that would prohibit insurance companies from using so-called affinity groups to discriminate based on educational attainment or income level.

One insurance association warned that the change could have the unintended effect of harming working-class Californians.

Similar discount programs are offered in 48 states. The proposed regulations to be considered next year would continue to allow the group discounts based on occupation and education, but only if they are justified and don't discriminate.