Congressional Hearing Scheduled This Week on Insurer Use of Credit Scoring

July 23, 2007

  • July 24, 2007 at 1:02 am
    Tarheel says:
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    NC voters were encouraged to “Give ’em Mel” when he ran for office. OK, now you have him. Good luck with that.

  • July 24, 2007 at 1:16 am
    Realist says:
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    There’s a reason why I don’t pay people (lie), I’m disadvantaged.
    Anyway, the Insurance Companies have all the money , everybody knows that, and Corporations just keep us down, everyone knows that, ask Michael Moore, he’ll tell you like it is.

  • July 24, 2007 at 1:26 am
    The Man says:
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    FINALLY, someone takes on the greedy insurance companies. Credit scoring is a scam and not fair to all consumers. Just another way insurance is “legalize government extortion.” Insurance execs getting richer and richer…it’s about profit margins and not the consumer.

  • July 24, 2007 at 1:27 am
    Webster says:
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    Gee- I thought insurance was state regulated…

  • July 24, 2007 at 2:10 am
    Adirondacker says:
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    Gee – I thought insurance was a business.

  • July 24, 2007 at 2:23 am
    Nobody Important says:
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    It’s a dirty business filled with ugly people. People who want to make a “profit,” God forbid.

  • July 24, 2007 at 2:42 am
    Huh ? says:
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    I have excellent credit – therefore I am an excellent driver – therefore I should get great auto rates, Right?
    Apparently I’m a good driver because I pay my bills, RIGHT?

  • July 24, 2007 at 2:46 am
    Nobody Important says:
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    Yes you should get a better rate depending on the algorithm filed on credit scoring filed by your company. This rating shows you less likely to file a claim. Not you specifically, but those in your statistical class are less likely to file a claim. It’s called the law of large numbers.

  • July 24, 2007 at 2:51 am
    Ratemaker says:
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    If credit-based insurance scores were really a “scam” to “charge higher premiums,” they would never last. There’s just far too much competetion between insurance companies. Maintaining such a scam would involve levels of collusion between competitors that would make OPEC look like snobby cheerleaders.

    If scoring served only to drive up premiums, the companies that DIDN’T use it would be growing like crazy. That just isn’t happening.

  • July 24, 2007 at 3:09 am
    Clark says:
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    What ever happened to the free market? Does congress have hearings on how other industries price their products?

  • July 24, 2007 at 3:14 am
    Realist says:
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    It’s not that difficult for it’s based on REALITY.

  • July 24, 2007 at 4:03 am
    Reverend says:
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    Face it. The insurance business is crooked. Witness the recently disclosed bid rigging, backdated stock options and other nefarious huricane related swindles.It almost makes bankers look legitimate. When credit scoring increases 90% of the applicants premiums upward, something is amiss. If an insurance company can raise its premium level by just 10% and only lose 5% of its insureds,what a deal for them. Insurance is a commodity and when the consumer gets raped enough we will have a national auto insurance program to go with our national medical program and our national property insurance program. I have been in the insurance business for 35 years and I am thoroughly disgusted with today’s practices. If any one asks what I do, I tell them that I play the piano in a whorehouse.

  • July 24, 2007 at 4:05 am
    TOM MURPHY says:
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    The Insurance Co’s have credit scoring and the Oil Co,s they just shut the refineries down to drive the price up.

  • July 24, 2007 at 4:31 am
    Adirondacker says:
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    Dude… you need to get out of this business and head for the whorehouse. Anyone (that) disillusioned about his or her occupation definitely needs to take a different path. Have you been in the claims department all this time or what? (If so, I don’t blame you for being so bitter)

  • July 24, 2007 at 4:50 am
    Reverend says:
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    No, Adirondaker,I haven’t been in the claims department directly. I am president
    of an insurance company. How do you rationalize the current state of dishonesty in this business? Or, do you simply deny it?

  • July 24, 2007 at 5:23 am
    Adirondacker says:
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    Okay, all inane jokes aside… I do see dishonesty in this industry as I do in almost all of (our) flawed capitalistic system. But I do not feel it is rampant. Nor do I believe insurance should be some sort state run commodity. This is still largely an industry of individuals and I’ve met many brilliant and completely honorable people over the years. Bad apples? You bet. But I still believe in the service I provide (my clients) and as the bad apples come and go, I continue to strive for excellence and grow my business… AND genuinely help people.

    No, I do not have blinders on, nor do I give the few greedy SOB’s (that actually get caught cheating) a free pass… it is not a perfect industry. Like any other big business, it’s inherently susceptible to corruption and cheating (the consumers have been cheating all along) but I still believe in what I do.

  • July 25, 2007 at 2:58 am
    The Voice of Reason says:
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    I don’t care if you are the president of an insurance company or an insurance agent, remember one thing, insurance companies are in the business of making money. The bottom line is the bottom line and they are going to do whatever they can to stay in the black. That’s fine but credit scoring is the reason why people were denied homeowner insurance. Credit scores were also the reason for your auto rates to be higher. Why, because they state, “your ability to pay is poor”. Well, if the person is poor and just about make their payment down to the last penny, should he.she be victimized because they don’t have a high paying job. Sorry, all the professional can argue what they want but as an insurance agent with a sizable agency, credit score will be the ruin of it and it should be thoroughly investigated. I see no corrolation between the ability to keep a clean license with no accidents and tickets and the ability of keeping a perfect credit score. When death & medical emergencies are thrown into the mix, a person credit score can be compromised badly. Let’s not mention the fact of Identity Theft. Why is this an issue? Because ever since the industry has started to use credit scores some 30,000 identities are stolen daily. The amount of money and the wasted time to address this invasion is because of the insurance companies greed to pass any expenses on to someone else. And then they had the nerve to tell you to sell Identity theft insurance to your customers. It is a vicious cycle and if everyone wakes up and sees it for what it is, it is crimmal.

  • July 25, 2007 at 3:11 am
    Nobody Important says:
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    Your name “the voice of reason” must be a joke, right? This is proof that we have done no job educating agents or the public. What state allows companies to deline based on credit scoring? None that I know. As far as I am aware, you either get a discount for a good score or you don’t for a bad score. Get a little education on the subject before your next post.

  • July 25, 2007 at 3:27 am
    Realist says:
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    A sad commentary on our industry, that fact being over the heads of so many, really sad.
    Of course, that’s why the industry is in the shape it’s in, too many small brains, even Presidents.

  • July 31, 2007 at 9:49 am
    A VETERAN AGENT says:
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    Credit scoring is a travesty and makes our industry based upon lies and half truths.
    The original credit model is now about 15 years old and is based soley upon a large number of Allstate homeowners claims – not auto!
    The law of large numbers is such that anything can be shown to correlate if you only have enough numbers.
    Common sense itself tells you that you are no more likely to drive into a telephone pole or gun down a pedestrian based solely on whether or not your Master Card is overdue! As stooopid as that sounds is exactly as stooopid as the insurance companies are for believing that and it is shameful!
    There are rates that are cheaper for DWI’s and accidents thanfor the difference between a 675 and 700 credit score. Get real!
    Insurance companies’ original thinking is like the running of lemmings and about as frequent as UFO’s landing on the interstate on the fourth of July.

  • July 31, 2007 at 9:53 am
    Realist says:
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    Anyone with any business sense knows that.



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