The Insurance Commissioner has inherent authority to step in and prevent discrimination in the insurance market. For example, insurance companies throughout California are currently getting away with insurance redlining, unfairly discriminating against underserved communities by charging them excessive rates based on their zip codes. Unfortunately, the current Insurance Commissioner is nowhere to be found on this issue. Marc will take action to prevent insurance discrimination on Day One.
- Require the insurance industry to increase transparency over how they determine their rates, to protect consumers from unfair price increases and discrimination.
- Close the loophole allowing insurance companies to discriminate against Californians based on occupation or education, and ultimately race. For decades, auto insurance companies have been allowed to charge premiums as much as 25 percent higher for drivers with lower levels of education or who live in zip codes with lower incomes, a backdoor practice that ultimately enables discrimination based on race. The Department of Insurance found this practice causes “wide socioeconomic disparities” and recommended banning it. The current Insurance Commissioner is satisfied with the status quo and has ignored those recommendations. Marc Levine will implement them.
- Prohibit insurance companies from refusing to renew policies for people whose circumstances have not changed, enacting a strict consumer-protection standard for non-renewals, in order to prevent the unsettling surprise of indiscriminate insurance policy cancellations.
- Protect Veterans, their families and survivors from insurance fraud. And fight pension poaching scams that target older Veterans.
- Prevent insurance redlining by requiring insurance companies to first obtain approval from the Insurance Commissioner before they can reduce the number of policies available in a given geographic area.
- Streamline the Low Cost Auto Insurance Program to make it more accessible for struggling and low income Californians.