Insurer Group Sues to Stop Washington Insurance Commissioner’s Credit Scoring Ban

April 7, 2021

  • April 7, 2021 at 11:21 am
    Bill Stewart says:
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    Another state Insurance Commissioner overreach. Good article.

    • April 7, 2021 at 12:49 pm
      SWFL Agent says:
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      Yes, Mr. Bell states “Your credit score has nothing to do with whether you are a responsible driver…” but you could use this argument with any UWing variable couldn’t you? Gender, homeownership, etc. In fact, what about territory rating? I am a responsible driver and it’s not my fault I have to live in a big city in order to work and support my family. Why should I pay more. I’d have more respect for Mr Bell if he’d speak the truth instead of trying to deny the data. The truth is that the explanation of how/why credit is a predictor of loss results is not easily explained or enumerated and therefore the argument becomes a moral issue (is it fair, does it hurt minorities or the poor). I’m okay with having that debate but the “nothing to do with” argument is BS. I am sure if, today, gender was introduced as new UWing tool it would be a hotter debate that the use of credit

      • April 12, 2021 at 2:48 pm
        Stush says:
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        Where were you these last 20 years? You can find all the support for credit based scoring if you wanted it. Every state insurance department requires tons of actuarial support for any rate filing “request”; rates are highly regulated. The statistical support for credit based scoring would be apparent to those who work in insurance. Don’t tell me that the commissioner knows anything; he’s an elected official who is only looking for votes. I doubt your experience as a producer would qualify as knowing something about this. Producers are salesmen and salesmen need noise to drum up sales and this is just destructive noise; rates are lower BECAUSE of the use of “credit scores”. there are facts behind the rates but we’ll have to attend another dog and pony show until folks realize that Barnum was right. And finally, this is about politics not insurance and I say abolish elected insurance commissioners.

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