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From: peterb@pbear.UUCP
Newsgroups: net.flame
Subject: Re: Re: Women/men and the consumption of
Message-ID: <6700019@pbear.UUCP>
Date: Thu, 4-Jul-85 19:58:00 EDT
Article-I.D.: pbear.6700019
Posted: Thu Jul  4 19:58:00 1985
Date-Received: Thu, 11-Jul-85 05:32:58 EDT
References: <524@rtech.UUCP>
Lines: 36
Nf-ID: #R:rtech:-52400:pbear:6700019:000:1552
Nf-From: pbear!peterb    Jul  4 17:58:00 1985


>>
>>       A friend of mine tried to get insurance on her car but the
>> insurance companies (3 of them before she said to hell with it)
>> refused to consider her for low cost insurance because her husband had a
>> marginal driving record (2 tickets in 6 months after 12 years without
>> a single violation)
>>
>> jeanette l. zobjeck
>>
>
>AAACK!  This sounds extremely illegal.  How do they get away with it?
>Jeff Lichtman at rtech (Relational Technology, Inc.)
>aka Swazoo Koolak

	It's simple... At least statistics says it is...

	All of insurance is based on statistics and the ability to apply it
to predict when an event can happen. In this case statistics are being used
to predict when a car accident will occur.

	Instead of applying distubution and percentile deviations to every
single application, each insurance company produces cross-tables that take
into account many factors, with one of the major factors being the change in
driving habit (here being negative since he recieved two tickets in past 6
months after 12 years of clean driving). This "minor" change is amplified by
the formulae to make the premiums larger during the first 6 to 12 months
since those months would be the ones with the largest deviation from the
normal. As time passes and if there are no more tickets, the premium will
drop since the deviation will approach a more "normal" value.

	There's nothing illegal about it... it's just mathamatics at work
earning money for the insurance companies...

Peter Barada
{ihnp4!inmet|{harvard|cca}!ima}!pbear!peterb