Looks like GEICO’s gecko going to need a lawyer:
Three former policyholders of auto insurer Geico Corp. filed a federal lawsuit on Monday accusing the company of discriminating against blacks by using education and employment status as factors in setting auto insurance rates.
It said that because black policyholders are “significantly less likely” than whites to hold jobs requiring advanced education, Geico knew that using occupation and education levels to set insurance rates would result in blacks being charged more than whites with similar driving records.
The lawsuit, which seeks class-action status, accuses Geico of intentional discrimination against blacks, and concealing its practices from policyholders and insurance regulators.
A copy of the complaint is here if you wish to wade into the legal gobbledygook.
This should be an interesting case to watch. I’m inclined to believe that GEICO will win, if only because I can’t see how occupation/education are any more or less discriminatory than territorial rating, which is acceptable (short of blatant redlining) at the federal level.