April 11 2006
A nationwide class action lawsuit has been filed against the auto insurance company for allegedly discriminating against African Americans by regularly charging them higher insurance premiums than it charges Caucasians with the same driving records. The suit was filed in the United States District Court for the District of Minnesota in Minneapolis. GEICO allegedly uses the occupation and level of education of its policyholders to determine premiums and therefore charges higher costs to those with less education and low qualification jobs. These factors are correlated with race and GEICO did not disclose its use of these factors to the public or to the state insurance commissioners.
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