Posts tagged: insurance industry
OLYMPIA – A credit score should not be used to help determine how much a person pays for home or auto insurance premiums, State Insurance Commissioner Mike Kreidler told a legislative panel Wednesday evening.
Factors that affect credit scores can discriminate against low income and minorities, Kreidler said as he lobbied for one of his top priorities, the banning of the practice in Washington state.
“Responsible people get laid off. They consolidate their debt. They shouldn’t have to pay more for insurance because of that,” Kreidler said.
But representatives of the insurance industry told the House Financial Institutions and Insurance Committee that a credit score does help predict good and bad insurance risks and should remain one of many factors the companies can use to set a customer’s rates.
“It’s not magic or voodoo, it’s science,” said Kenton Brine, a representative of the Property Casualty Insurers Association. “It’s actuarially sound.”