Washington Commissioner Again Bans Use Of Credit Scores For Underwriting

Washington State Insurance Commissioner Mike Kreidler has again banned the use of credit ratings in insurance pricing.

‘I’m taking this action against insurers’ use of credit scoring in response to the economic harm many people have experienced during the COVID-19 pandemic—harm that has significantly impacted people who are already financially vulnerable,’ said Kreidler in a statement Tuesday.

‘We know that now, more than ever, credit reporting is unreliable. It is unfair to base how much someone pays for frequently mandatory insurance on an unreliable and fluctuating factor like a credit score.’

The announcement marks Kreidler’s second attempt to ban credit rating through administrative rulemaking for setting prices in automotive, homeowners and renters insurance.

The first attempt, banning it by emergency rule, was shut down when Thurston County Superior Court Judge Mary Sue Wilson granted summary judgment to the insurance industry on Oct. 8, 2021.