2013 Fall 8
The answer key to Opportunity A reads "This is not permissible. According to Regulation 7/00 (UDAP), credit information is defined to include income. UDAP prohibits using credit information to treat customers differently". My understanding of the opportunity is that the insurer offers a streamlined process for which these potential customers can quickly obtain a quote, but they are rated the same as the rest of the population. I also understand C-CONES to be specific to the rating process (or is it more general?). Is this not permitted?
More generally, would it be permissible to increase the marketing budget for this affluent area while treating the customers the same for the purposes of quoting and rating?
Comments
It is not permitted because you are treating them differently as was mentioned in the answer. You can increase the marketing budget, for example running more ads targeting these group of policyholders, but you're still expected to provide the same service to everyone