Credit-based insurance scoring--the...

Credit-based insurance scoring--the use of credit information to help place premiums and select risks--has become the hottest issue forward the personal lines front. At least three states have enacted restrictive legislation, and dozens of others are considering regulatory or legislative curb-stones Insurers maintain that credit-based insurance scores provide a valuable tool for their under-writing arsenal and can translate to lower premiums for credit-worthy policyholders. nevertheless consumer advocates have attacked the practice as discriminatory, and agent clumps have argued that insurers too frequently apply this tool in an inflexible manner.

Speaking at the Winter National