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PREVIOUS R & D REPORTS
Pennsylvania auto insurance: In a six months study in 1992, I produced the report entitled "Operation of an Audited-Mile/Year Automobile Insurance System Under Pennsylvania Law." (It was published in the Casualty Actuarial Society’s 1993 Summer Forum: pages 307-338.)[1] This study developed the representative transaction-by-transaction approach for subsequent operational studies. Although odometers were mechanical and annual policies were assumed, the principles were the same as now.
Texas auto insurance:
The research findings are presented in my 2000 Report to the
Texas Legislature “Why
the Standard Automobile Insurance Market Breaks Down in
Low-Income Zip Codes” (39 pages).
In late 2000, on the basis of this report, the Legislature introduced HB 45 which in 2001 was enacted into law. Although HB 45 sunset in 2005, the legislative validation of per-mile insurance as an optional alternative to the car year exposure unit led to regulatory approval for the MileMeter Insurance Company to become a licensed carrier in 2008, and to sell coverage at cents-per-mile rates based on odometer readings.
[1] Also
available as an article included in a 500-page volume at
www.casact.org/pubs/forum/93sforum/93sforum.pdf .