Michigan Supreme Court to Hear Ban on Insurers’ Use of Credit Scoring

The Michigan Supreme Court has agreed to hear a case involving a ban on the use of credit scoring by insurance companies.

In 2005, the Office of Financial and Insurance Regulation’s (OFIR) promulgated rules banning the use of insurance credit scoring.
The Insurance Institute of Michigan, the Michigan Insurance Coalition, and several insurers challenged the rules that are currently stayed from enforcement.

The issue has been working its way through the legal system for the last four years.

“This is good news for Michigan consumers,” OFIR Commissioner Ken Ross said. “After four years of waiting, we are hopeful that the court resolves this issue in favor of Michigan drivers.”

The court will begin hearing arguments in October, 2009.

Latest Comments

• May 13, 2009 at 12:39 pm

  W. M. Wilson says:

  Credit scoring is a red herring used to distract attention from the main issue of unfair discrimination. The weight given to location trumps all other discriminating factors. ... read more
• May 13, 2009 at 10:37 am

  MI Ins Co Employee says:

  I don't get the big fuss over credit scoring. It is a discount for having good credit. Like a discount for having a security system on your house, or a discount because you ... read more
• May 13, 2009 at 10:16 am

  Jerry says:

  Here's a comment from an ex Canadian and proud American. I was thrilled when credit scores were part of the application process for getting car insurance. That's because in Ma... read more