Insurance coverage commissioner seems to be to ban use of credit score scores in insurance coverage pricing

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Washington state insurance commissioner Mike Kriedler plans to permanently ban the use of credit scores in determining consumer insurance premiums for the next year.

The Commissioner requests a ban on the pricing practice from January 1st, 2022. A public hearing on the proposed ban is planned for November 23rd, 2021.

“The Washington insurance industry wants to use an unfair, secretive and unrealistic method of determining what consumers pay to insure their vehicles and homes,” the commissioner said in a statement. “I will continue well-supported efforts to permanently ban credit scoring.”

Kriedler’s plans for the next year come after a higher court earlier this month overturned its urgency ruling that ended the use of credit scores.

Continue reading: Richter lifts credit score ban for calculating premiums

Following the October 8 ruling by the Thurston County Superior Court, both the American Property Casualty Insurance Association and the National Association of Mutual Insurance Companies turned to Kriedler, telling him to abandon his obligation to ban the use of credit scores – but the commissioner declined calls.

“Consumers deserve better. The billion dollar industry must take steps to break free of this unreliable practice, ”said Kriedler.

According to the Washington State Office of the Insurance Commissioner, three other states – including California – have already banned the use of credit scores for insurance purposes.

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