Credit-Based Insurance Scoring [F/S]
NAMIC supports the “Model Act Regarding Use of Credit Information in Personal Insurance” that was adopted by the National Conference of Insurance Legislators and is largely the basis for credit-based insurance scores laws adopted today in 47 states. NAMIC opposes any attempts by state or federal lawmakers or insurance regulators to further restrict the use of credit-based insurance scores. Credit information has been widely used in other segments of the financial services industry for years, and insurance scores have proven to be a strong predictor of risk of loss. In a competitive marketplace, NAMIC finds no reason why insurers should be prohibited from using credit-based insurance scores in underwriting and rating a risk. It is a far more accurate and objective methodology than traditional underwriting practices, and credit-based insurance scores have been shown that they do not penalize financially responsible individuals through premium subsidization.
Posted: Monday, April 12, 2010 1:39:40 PM. Modified: Wednesday, July 25, 2012 4:38:27 PM.
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