Posted On: January 20, 2007, 10:41 am CST

Posted By: Bilked Customer

I understand the point the insurance industry is trying to get consumers to understand.

The issue at hand is:
1. Inaccuracies in credit reporting bureau infomation and lack of accountability for that inaccurate accountability.
2. Insurance is another consumer product, and in some cases, mine as an example, the insurer caused a negative crdit report through their lack of ability to perform the functions that they are paid for. This in itself should prohibit any insurer from being able to pull a credit history on anybody.

By charging a person more based on their credit history which may include the number and type of accounts, delinquencies or the number of times a loan or credit card was applied for, has no bearing on the individuals past claim history or past insurance payment history.

As an example, someone who has been insured with the same insurer for 15 years. Never had a claim,or any claim made was legitimate, never late on a payment. The Insurer has all the information they need about the insured claims and payment history. As well, an individual seeking insurance with a new carrier is asked these questions regarding previous carriers and claims. The insurer also has access to the past claims and payment history of an individual via the other carriers.

If an individual with no past claims or insurance premium payment delinquencies applies for a home loan, auto loan and credit card. This individual is now subject to a higher premium than before based on their credit history activity as opposed to the claims and insurance payment history.

Ideally, a a consumer service, an isurer, if legitimate, would base premiums on the claims and premium paymnet history of the insured as opposed to the theft method they are presently using.

The credit reporting agencies and issues around errors, identity theft and otherwise false or inaccurate information should not be used to determine somebody premium.