NCJ Number
31343
Date Published
1975
Length
43 pages
Annotation
THE TEN LARGEST INSURANCE COMPANIES IN WISCONSIN, A SAMPLE OF INDEPENDENT AGENTS AND A SAMPLE OF EX-OFFENDERS WERE SURVEYED ON THE PRACTICE OF AND EXPERIENCE WITH EX-OFFENDER AUTOMOBILE INSURANCE.
Abstract
THE SURVEY INDICATES THAT SEVEN OF THE TOP TEN AUTO INSURANCE WRITERS IN WISCONSIN DISCRIMINATE IN SOME MANNER AGAINST INDIVIDUALS WITH CRIMINAL RECORDS. AN EXTENDED INQUIRY WAS ABLE TO FIND NO CREDIBLE, STATISTICAL JUSTIFICATION FOR THESE DISCRIMINATORY PRACTICES EITHER IN THE PREMIUM/LOSS EXPERIENCE OF THE INSURANCE COMPANIES OR IN THE BODY OF SOCIAL SCIENCE RESEARCH ON DRIVING BEHAVIOR. THE INCIDENCE OF THIS DISCRIMINATION APPARENTLY FALLS MOST HEAVILY ON THOSE CONVICTED OF MORE SERIOUS OFFENSES RATHER THAN THOSE WITH ONLY ARREST AND/OR MISDEMEANOR CONVICTION RECORDS. THE APPLICATION OF THIS BIAS IN MOST INSTANCES APPEARS TO BE ON AN ERRATIC, HIT OR MISS BASIS DUE TO THE VARYING POLICIES FOLLOWED BY DIFFERENT COMPANIES AND THE DIFFICULTY CONFRONTING INSURERS IN OBTAINING RELIABLE CRIMINAL RECORD INFORMATION. THE AUTHORS CONCLUDED THAT THIS PATTERN OF DISCRIMINATION HAS A SERIES OF NEGATIVE IMPACTS BOTH IN TERMS OF THE INDIVIDUAL EX-OFFENDER AND FOR THE SOCIETY AS A WHOLE; AND THERE IS A LACK OF INFORMATION AMONG OFFENDERS, AND THOSE WHO ADVISE THEM WITH RESPECT TO THE VARIATION IN RATES AND UNDERWRITING POLICIES REGARDING EX-OFFENDERS AMONG THE DIFFERENT COMPANIES; ALSO, THAT THIS LACK OF INFORMATION EXTENDS IN SOME INSTANCES TO THOSE SELLING INSURANCE.