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Insurance Regulators to Hold Hearing on Credit Scoring

Posted on 29 Apr 2009

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The National Association of Insurance Commissioners (NAIC) will hold a public hearing tomorrow, Thursday, April 30, in Arlington, VA, about insurance companies' use of credit scoring.

The hearing — co-hosted by the Property and Casualty Insurance Committee and the Market Regulation and Consumer Affairs Committee — will focus on the impact of credit-based insurance score on consumers, including the following issues:

* An explanation of what constitutes a credit-based insurance score;

* An explanation of how insurers use credit-based insurance scores; and

* A discussion on how current economic conditions have affected policyholder premiums related to credit-based insurance scores.

“Credit scoring is one of the most significant developments in the pricing of auto and homeowners insurance in the past 20 years,” said NAIC President and New Hampshire Insurance Commissioner Roger Sevigny. “Our goal is to protect consumers by ensuring that any use of credit scoring does not have unfair or unintended consequences.”