Posted On: April 27, 2005, 9:16 am CDT

Posted By: RC

I agree with the principal of credit scoring just as banks do. However , the insurance industry, agents, who have to esplain rates to clients, in particular are kept in the dark as to how they are calucalated. There is no standard in the industry and credit scores can vary tremendously from company to company with no way to discern the reason. It appears insurance companies may be able to skew the 'models' used in scoring to attract or detract certain segments of the public. Not necessarily by income but more by area and various other critieria not known to anyone but the companies. As an independant agency owner, I believe it is a huge benefit for the general public, an issue for the minority with acceptable bad credit, but also should be somewhat standarized. The public needs to know how they are rated and why in order to improve their circumstances. As educated and involved as the public is tody, if the industry does not provide answers to these questions, they will force government to step in and that is not a good idea for anyone.