Issue categories:
March 28, 2014
•
1 min read
Letter to NAIC Prohibiting the Use of "Price Optimization" in Insurance Pricing as Clear Violation of Unfair Discrimination Provisions in State Rating Laws
The Consumer Federation of America (CFA) and the Center for Economic Justice (CEJ) write to urge state insurance regulators, individually and as members of the NAIC, to stop the use of “price optimization” by insurers to set premium charges for consumers. In this letter, we explain what “price optimization” is, why it clearly violates statutory and actuarial standards barring unfairly discriminatory rates, and why it will lead to higher rates for the most vulnerable consumers for reasons completely unrelated to risk of loss.
Our Subject Matter Experts
Related Articles
June 26, 2026
/ Testimony & Comments
CFA Letter of Support for AB 2038 to the California Legislature
June 11, 2026
/ Blogs
Like a Bad Neighbor: State Farm’s Treatment of California Consumers After The Los Angeles Wildfires
April 29, 2026
/ Testimony & Comments