Insurers: Washington Commissioner’s ‘Rushed’ Regulatory Process Will Hurt Policyholders

The American Property Casualty Insurance Association submitted comments in opposition to stakeholder draft regulations which will make Washington Commissioner Mike Kreidler’s emergency regulations banning the use of credit-based insurance scores permanent for three years.

APCIA is again calling on the Office of the Insurance Commissioner to let the temporary ban expire at the end of the 120 days.

“Commissioner Kreidler is rushing through a permanent regulatory process just like he rushed through his emergency regulations. The worst part is the sticker shock lower risk Washington policyholders are experiencing when they get their renewal notices,” Alex Hageli, APCIA’s director of personal auto, electronic issues, specialty lines and counsel. “This hasty process is not even providing time to incorporate the comments submitted last week. This is not an effective way to make public policy.”

APCIA’s comment letter calls for insurers to be permitted to reinstate their previously approved rates and continue to utilize credit history, which is authorized by statute, in their underwriting and rating practices, as Washington law requires rates to be related to the risk of loss.

Kreidler’s office has been reached out to for comment.

Related:

• Credit-Based Insurance Scores – The Battle Heats Up
• 50-Plus Insurers Met Deadline to Comply With Washington’s Credit Rule
• Kreidler Urging Other Insurance Commissioners to Ban Use of Credit Scores

Topics Carriers Legislation Washington