Tag: credit scoring

Washington Judge Overturns Insurance Rate Credit Scoring Ban

credit score concept on the screen of smart phone, checking payment history in bank

A judge on Friday overturned a Washington state rule prohibiting insurers from using credit scoring to set rates for auto, homeowner and renter insurance. Insurance Commissioner Mike Kreidler adopted the rule in February, immediately drawing a legal challenge from insurer groups. The rule, which was set to take effect March 4, was paused while the… Continue reading Washington Judge Overturns Insurance Rate Credit Scoring Ban

Root Car Insurance Will Stop Using “Discriminatory” Credit Scores to Set Rates

Rearview of a young African businessman driving through the city streets in his car

The color of your skin can affect how much you pay for your car insurance, Root Insurance says, and it wants to change that. Using financial security as a means of deciding rates is one factor in the disproportionately high insurance rates for members of racial minorities, the company says. The trouble is, Root will… Continue reading Root Car Insurance Will Stop Using “Discriminatory” Credit Scores to Set Rates

NAIC to Scrutinize Insurance Rate Guidelines for Racial Bias

Car safety. Happy afro couple wearing seat belts, testing new car . copy space

Many car insurers for years have used credit scores, education and occupation to determine your premium rate. Now, that approach is under review for potential racial discrimination. A standards-setting organization for state insurance departments is launching a wide-reaching effort to scour through existing practices—in sales, pricing, underwriting and all other facets of insurance—to identify those… Continue reading NAIC to Scrutinize Insurance Rate Guidelines for Racial Bias