Credit Score Ban For Insurance Premium Calculation Leads To Massive Lawsuit

 Tuesday, April 13, 2021

 Live Insurance News

The American Property Casualty Insurance Association (APCIA) has filed a lawsuit against the regulator in Washington state over the ban against using credit scores for insurance premium calculation.

Commissioner Mike Kreidler issued an administrative ban against using that factor for underwriting policies.

The office of Commissioner Mike Kreidler defended its ban against using credit scores for insurance premium calculation.

It released a statement calling the practice ‘inherently unfair’ and that the ban protects customers.

The commissioner has repeatedly supported proposals to eliminate the use of credit scores among the factors insurers use for rating the risk associated with current or perspective policyholders.
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