Consumer Federation of America News

Consumer Group Demands Probe After Reports of Alleged Bias at State Farm

A national consumer rights group on Thursday called on state insurance commissioners to investigate racial bias in claims handling after the New York Times reported on discrimination lawsuits filed against State Farm by a Chicago policyholder and a former employee …

Commissioner Navarro Responds to Report of Premium Increases for Military Members

Delaware Insurance Commissioner Trinidad Navarro responded strongly to a Consumer Federation of America report that Delaware service members may return home from deployment to increased auto insurance premiums, calling the practice completely unacceptable and issuing a formal bulletin to insurance …

Insurer Group Hammers Claim that California Prop 103 Saved Drivers Billions

The insurance industry is taking exception to a new report commemorating the 30th anniversary of one of California’s primary auto insurance laws that claims the law has saved drivers billions of dollars. The Consumer Federation of America reported on Wednesday …

Colorado Commissioner’s Ban on Price Optimization Hailed by Consumer Groups

An official bulletin issued by Colorado Insurance Commissioner Marguerite Salazar to insurance companies that prohibits insurance companies banning price optimization techniques in rating customers, is being praised by a consumer group. Price optimization is defined at the use of mathematical …

Florida Bans Price Optimization; Insurers Question Definition

A memorandum released last week by Florida Insurance Commissioner Kevin McCarty warning insurers in the state not to use price optimization in rating has gotten cheers from a consumer advocate group and jeers from an insurance industry trade association that …

Consumer Group Urges Florida to Keep McCarty as Commissioner

A national consumer group is urging Florida to keep its current insurance regulator, a man the group says is one of the best regulators in the country but who is rumored to be under pressure to resign by the Scott …

Group Urges New York DFS to Review Auto Insurers’ Rate-Setting Practices

A consumer advocacy group said its analysis shows some of New York State’s largest auto insurers are charging higher premiums to motorists who have less education and non-professional, non-managerial jobs. The New York Public Interest Research Group (NYPIRG) said it …

Consumer Group Recommends Ways to Mitigate Uninsured Motorists Dilemma

Most uninsured motorists in the U.S. are responsible, safe drivers who simply cannot afford to purchase liability coverage with their income but who still need to drive for their work, according to a consumer advocacy group. The Consumer Federation of …

Report Calls for Prior Approval for All States

Holding automobile insurance regulation in California as an example, the Consumer Federation of America issued a report on Tuesday showing that auto insurance expenditures in America rose by 43 percent on average over the past quarter century. The report holds …

Calif. Auto Insurance Down over Quarter-Century, Groups Debate Why

The average California auto insurance expenditure fell from 1989 to 2010, while every other state in the nation saw substantial increases over that same period, according to a Consumer Federation of America analysis auto insurance expenditures. The group attributes the …