Bill to Study Insurance Rating Factors in Washington Moving Through State Legislature

A bill that would create a study on the impact of insurance rating factors in Washington, including credit history, is moving through state Legislature.

Senate Bill 5589 has passed out of committee in the Washington State Senate. The bill was introduced by Insurance commissioner Patty Kuderer and sponsored by state Sen. Bob Hasegawa, D-Seattle.

The bill would enable the commissioner’s office to analyze how insurance companies use credit history and credit-based insurance scores to understand premiums for lines of insurance like homeowners and auto.

Kuderer has raised concern about the reliance on algorithms and data determining premiums. The study would also look at factors that bill proponents believe could create unfair discriminatory barriers for specific groups of residents.

The effort appears to pick up where Washington Insurance Commissioner Mike Kreidler left off. He created a controversial rule banning credit scoring in insurance underwriting, which was challenged in court.

The bill calls for a preliminary report to be submitted to the Legislature by Dec. 31.

Topics Washington