Posted On: January 20, 2007, 3:44 am CST

Posted By: Bilked consumer

The facts here.
1. A credit score, how many accounts open, types of accounts, how many inquiries have been made and by whom,etc, etc, have no bearing on a homeowners insurance claims.
I do not recall a time when I applied for a new car or home loan, a new credit card, etc, or therwise allowed a company to check my credit history,edit and then subsequently or as a result of the credit check or history, experienced flooding of my home, tornado damage, a break in, vandalizm, etc etc.

Alo note the generalization in Allstates (just an example of one insurer using this poor method to justify increased rates). Can anybody tell me exactly what type of claims are filed as a result of an unsatisfactory credit history? Is the insurance industry saying that 1) your credit history indicates you will file a fraudulent claim? or 2) your credit history indicates that should you experience a legitimate loss, you are more likely to use the policy that you are already paying for to cover the damages?

This credit scoring based premium setting method is nothing more than another way for the the insurance industry to bilk the public out of additonal premiums.

My guess is that if the american people created a PAC that was funded to to lobby and pay for $15,000.00 a plate lunches to their supposed elected represtatives, we would have proper, or at least equal representation with those officials that should be protecting it citizens from Corperate America.

one item in addition from my own experience with my insurer. A premium increase that was part due to my insurer failure to provide proof of insurance to an auto lender. Received no notification of credit history impact from the lender or the insurer. Did not realize there wa an issue until the 3 year credit pull by the insurer ad vised of the increas due to the credit history which in fact was partially a result of their inability ot provide the service and docuentation that I pay them to provide.
Six plus months later I am still trying to get the insurer to re-run the credit report and refund over payment and readjust the premium. they screwed it up and I am forced to clean it up. What a great set of policies the Department of insurances and Insurers have put in place....