Law and Economics Commons^™

Insurance And The Limits Of Rational Discrimination, Martin J. Katz

Sturm College of Law: Faculty Scholarship

As the state of the insurance industry indicates, policy makers and academics have reached little consensus about how to address the implications of rational discrimination. This Current Topic argues that rational discrimination should not be viewed simply as a question of profitability or financial interests, but must also be approached from a moral perspective. Part One examines the underlying cause of rational discrimination in one particular insurance market,' locating its ultimate source in the historical injustices perpetrated against Blacks. This section condemns rational discrimination for perpetuating and even exacerbating social inequalities. The analysis suggests that our society will not fully …