Discrimination in the Insurance Industry

Table of Contents:

1. IDENTIFYING SYSTEMIC DISCRIMINATION IN INSURANCE	1
THE REGULATORY FRAMEWORK OF THE INSURANCE INDUSTRY IN CANADA	2
A BRIEF HISTORY OF CANADA’S HUMAN RIGHTS ACT OF (1977) AND THE CANADIAN CHARTER OF RIGHTS AND FREEDOMS (1982)	4
The Canadian Charter of Rights & Freedoms: What is it?	5
The Canadian Charter of Rights & Freedoms: The Issue	6
The Canadian Charter of Rights & Freedoms: The Application to Insurance	8
Table 1.1 Sections of the Human Rights Code of Ontario with Implications for the Insurance Industry	8
The Bates v. Zurich Decision	9
The Canadian Charter of Rights & Freedoms: Theory Versus Reality	12
Individual Treatment	13
Causation	14
Intrinsic Fairness	14
The Conclusion of the Matter	15
2. AN ANALYSIS OF RACIAL DISCRIMINATION IN AMERICA & INSURANCE	16
RACIAL DISCRIMINATION IN RELATION TO INSURANCE: A U.S. HISTORICAL PERSPECTIVE	16
1800s: Slavery and Civil Rights	17
Early Glimpses of Racial Equality	17
Race and Large Insurance Companies	18
1900s: Federal Involvement in the Insurance Industry	20
Residential Security Maps Introduces Redlining	20
Legal Cases Affecting The Insurance Industry	21
Historical Legislative Acts Against Racial Discrimination	22
RACIAL DISCRIMINATION IN AMERICA TODAY: A RELEVANT TOPIC	24
Beliefs and Experiences of Racial Discrimination in America	25
Housing	25
Health Care	25
Racial Discrimination in Unprecedented World Events	26
3. DEFINING UNFAIR DISCRIMINATION IN THE U.S. INSURANCE INDUSTRY	28
THE STANDARD OF UNFAIR DISCRIMINATION	28
Revisiting the McCarran-Ferguson Act of 1945	29
Revisiting the National Association of Insurance    Commissioners Unfair Trade Practices Act	30
UNFAIR DISCRIMINATION: THEORY VERSUS REALITY	31
A Federal Definition with a State Interpretation	31
Disparate Impact and Proxy Discrimination In Insurance	33
Disparate Impact: A Question of Unintended Effect	34
Proxy Discrimination: Finding Evidence That       Discrimination Is Intentional	35
4. INDENTIFY SUBTLE FORMS OF DISCRIMINATION IN INSURANCE PRACTICE	38
CRITICAL ANALYSIS OF DISCRIMINATION IN THE INSURANCE INDUSTRY	38
Subtle Forms of Discrimination	41
Credit Cards	41
Zip Codes	43
Big Data	48
Representation	51
Review: Discrimination in the Insurance Industry	56
Section 1: Identifying Systemic Discrimination in Insurance	56
Section 2: An Analysis of Racial Discrimination in America and Insurance	59
Section 3: Defining Unfair Discrimination in the Insurance Industry	60
Section 1: Identifying Subtle Forms of Discrimination in Insurance Practice	61
Endnotes	64

United Insurance Educators, Inc.

PO Box 1030

Eatonville WA 98328

(253) 846-1155