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

CFA TC

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.

Related Articles

CFA TC
June 26, 2026 / Testimony & Comments
CFA Letter of Support for AB 2038 to the California Legislature
CFA TC
June 11, 2026 / Blogs
Like a Bad Neighbor: State Farm’s Treatment of California Consumers After The Los Angeles Wildfires
CFA TC
June 09, 2026 / Reports
Blueprint for a Consumer-First Congress
CFA TC
April 29, 2026 / Testimony & Comments
Consumer Advocates Urge Louisiana Legislature to Ban Credit Scores and ZIP Codes in Auto Insurance