A recent bulletin in Missouri warns insurers that the use of 'price optimization' techniques in personal lines may violate state laws prohibiting unfair discrimination in insurance rates.
In contrast to prohibitionson price optimization imposed by other states, the Missouri bulletin states that it is issued 'to inform and educate the reader,' does not have the force of law, and is not binding on Missouri regulators or insurers.
The bulletin advises insurers to review Missouri's laws regulating insurance rates, and to be prepared to identify and explain any use of price optimization in personal lines rate filings.
AAIS Advisory notices are posted periodically to announce AAIS product developments, and to provide news items that are relevant to our program users. Advisory notices are news summaries that paraphrase documents which should be consulted directly for complete, authoritative information.AAIS - American Association of Insurance Services Inc. issued this content on 2016-01-15 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-15 20:53:14 UTC
Original Document: http://www.aaisonline.com/AAISFrame/ConnectFrame/AdvisoryFrame/tabid/143/ArticleID/1091/Missouri-Cautions-Against-Use-of-Price-Optimization.aspx
