an interesting development in the debate over credit scoring, an insurance-industry practice that Washington state Insurance Commissioner Mike Kreidler is trying to ban.
Some background: Many insurers now pull your credit information and use that as a key factor to determine your rates for insurance, including auto- and homeowners' coverage. Kreidler argues that the data has nothing to do with how you drive or care for your home; the companies that use it argue that credit is valuable information that's closely correlated with claims and risk.
This morning, Los Angeles-based Workmen's Auto Insurance Company issued a press release saying that it supports the ban and "has never used an individual's credit when considering their eligibility or determining their insurance premium."
Wednesday, January 27, 2010
Posted by Rich R. at OIC at 9:51 AM
Insurance news: Earthquake `mortgage' insurance: worth the cost for those who can't get earthquake coverage?
That was the topic of a Northwest Cable News report last night. Point to remember, though: It's not a substitute for true earthquake coverage, which can be pretty cheap even in the earthquake-prone Northwest.
Posted by Rich R. at OIC at 9:38 AM