CREDIT SCORING PONDERED

Positive aspects of how the use of credit scores in insurance underwriting benefits consumers were recently demonstrated to Colorado state legislators by the National Association of Independent Insurers (NAII). NAII Northwest Regional Manager Michael Harrold said NAII and its member companies hope to work with the Colorado Division of Insurance to fashion a regulation on the use of credit scores that contains reasonable disclosure and grievance provisions without unnecessarily intruding into legitimate insurance underwriting and rating practices. Deputy Insurance Commissioner Maryellen Waggoner told the forum some of the division’s concerns included that credit scores and credit history are not the same and that the use of credit scores might not allow for exceptions, such as for a person who pays all bills in cash. Other factors, she said, are that credit reports may be inaccurate and consumers are not given enough information on what creates problems with their credit score or how to remedy it.