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CSAA Sued for Discrimination

October 13, 2006 by Jonathan Stein

This is interesting. CSAA, what you generally think of as AAA, sells auto and home insurance. And, apparently, someone thought it would be a good idea to stop selling insurance to Chinese speaking Californians. So, a group of agents who were fired have sued for discrimination.

I always find it interesting that an insurance company makes decisions like this. The whole idea of insurance is to spread out the risk of loss among as large a group of similar people as possible. In this case, similar people would be people who live in zip code 12345, for example. Why would you want to not sell your policies to a group of people who fit this criteria? That is just bad business for an insurance company.

Interestingly, I expect to see a lawsuit by the community that was discriminated against shortly. This seems to me to be a clear violation of the insurance code and one that needs to be fixed through the court system.

Categories: Consumer Issues, Current Affairs, Insurance Operations

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