Mass. Credit Score Vote Disappoints PCI

The Property Casualty Insurers Association of America expressed disappointment over the decision of the Massachusetts Joint Committee on Insurance to approve SB 2093.

The bill would place a total ban on the use of credit-based insurance scores for the purpose of rating homeowners or personal auto policies.

“Despite the wealth of information provided to the Committee on the benefits and actuarial soundness of using insurance scores, we are once again facing additional restrictions on the ability of insurers to operate in a reasonable environment in this market,” stated Frank O’Brien, PCI vice president and New England regional manager.

“Unlike most states, where the use of insurance scores are permitted, or allowed with some limited regulatory guidelines, the measure reported by the Committee would take the drastic step of banning the practice altogether,” he continued. “In doing so, the bill’s supporters are ignoring the impact that this will have on customers who benefit from having good credit histories.

“We will continue our efforts to educate the Legislature relative to the benefits of using insurance scores in the underwriting process,” O’Brien concluded.

Latest Comments

• March 20, 2004 at 4:50 am

  Jack Scharff says:

  1-(908) 608-1700 Your credit score impacts your rates Is credit scoring fair? Accurate? What is my FICO score? Do's & Don'ts for best credit scores Your credit score impacts y... read more
• March 19, 2004 at 6:41 am

  John C. says:

  Thank you for some sanity Mr. Wood and Mr. Kirven! If you look at the arguments of the previous postings they don’t make any sense. They say the carriers use ... read more
• March 19, 2004 at 5:27 am

  Retired Underwriter says:

  To educate people who do NOT work in the Ins. industry as an Underwriter, the credit scoring is based on more than how you pay your bills - but this does carry a large percent... read more