In an earlier article, I questioned the fairness of the status quo in insurance classification and its regulation and challenged the claim of insurers and most regulators that classification is a neutral, scientific process based on statistical differences. I also disputed the contention that refined classifications are encouraged or required by state law.
Here I turn to the validity of economic analyses of refined classification for the personal lines of insurance generally purchased by individuals: automobile, homeowner's, renter's, health, life, and disability insurance. My conclusions differ from much of what has appeared recently in writings on classification in law reviews and public policy journals.
Leah Wortham, The Economics of Insurance Classification: The Sound of One Invisible Hand Clapping, 47 OH. ST. L. J. 835 (1986).