PIA Reiterates Positions In Response to Remarks By President Biden
March 6, 2021In response to remarks by President Biden during a CNN Town Hall last week, PIA issued a statement with facts about the way auto and homeowners’ insurance policies are priced and the role of states and professional independent insurance agents in that process. In the Town Hall, the President stated that people who live in traditionally black neighborhoods pay more for auto and homeowners insurance.
“Insurance companies base their prices on, among other considerations, the risks posed by individual consumers, and the evaluation of risk is based on numerous factors,” stated PIA. “Race is not used as a factor in pricing because every state prohibits that sort of racial discrimination. Those existing state laws make it illegal for companies to price products in racially discriminatory ways. In every state in America, insurers are prohibited from pricing their products based on race.”
READ: PIA National takes on President Biden’s insurance commentary
PC360 2/22/21 (registration)