Posted On: May 19, 2006, 7:24 pm CDT

Posted By: Texas Agent

Answering your question the Insurance Journal recently cited a report that trial lawyers are filing nine times more lawsuits now than they did in the 1950s even when the statistical factors are adjusted as to population and number of lawyers. Trial lawyers love to pick a target and go after it "en mass" as in breast implants, asbestos, mold, et. That's why trial lawyers live in such big houses, if you haven't noticed. The problem with credit scoring is that using the law of greater numbers is unfair to individuals. At least with the old system of tickets and accidents used for rating risk, the individuals' record determined their rating fate. I have had numerous customers over the years with lousy credit scores, but good driving records and no at-fault claims. I feel that having these folks pay higher rates is unfair; however, Farmers is having to compete in a very competitive market and do the best they can under the circumstances. As they explained to us agents, "If we don't use credit scoring then you will loose your safest drivers with the best credit to the companies that use credit scoring because they have lower rates for them using that system." Farmers communicated with their agents and many of us resisted credit scoring, but in fairness to Farmers they had to compete or loose more market share when their competitors changed the rules of the game. Farmers was among the last of the companies to implement credit scoring.