Airlines now have to carry mileage liability at the "fair value" of what the award credits could be sold for, instead of estimating the cost in fuel and service to give away otherwise empty seats.
The CFA suggests state insurance commissioners help make rates fairer and more affordable for a wider range of consumers by lowering minimum liability coverage, making certain that insurers are charging fair rates for this coverage and prohibiting or restricting providers from using factors unrelated to driving (including education and occupation) to price their policies.
The aim of the deal is to strike a fair compromise between both groups, primarily by crystallising and reducing the potential liability of the guaranteed annuity rates.