New Jersey’s Department of Banking and Insurance has published a useful guide to “what every insurance agent needs to know about credit-based insurance scores” on its Web site: www.state.nj.us/dobi/index.shtml.
The guide states: “Insurance agents have the complex job of being on the front line everyday with consumers. From dealing with complicated claims, to placing a difficult risk, to reassuring a client after a loss, insurance companies rely on the agent community to communicate with policyholders.
“One of the more difficult current issues that agents and customers are trying to understand is insurance scoring and use of credit reports. The mention of their use may bring to mind questions about privacy, agent liability and consumer protections. Members of the insurance industry recognize the value of providing you with the tools you need to answer such questions. We designed this brochure with the producer community and that goal in mind. It is intended to help you answer questions, and communicate the benefits of insurance scoring to your customers. Understand, however, that this is a rapidly-changing area in which practices vary from company to company.”
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