Kreidler urges nation’s insurance commissioners to ban use of credit scores
April 28, 2021
OLYMPIA, Wash. – Washington Insurance Commissioner Mike Kreidler is urging his colleagues in other states to consider action to ban the use of consumers’ credit scores for determining insurance rates.
Kreidler’s call for action follows a Thurston County Superior Court ruling on April 23 that allowed his emergency rule to temporarily ban the use of insurance credit scores to remain in effect. The decision denied an industry request for a preliminary injunction.
Kreidler issued the emergency rule on March 23. It takes effect June 20. To comply, insurers must file policies by May 6 for review and approval by Kreidler’s office.
California, Hawaii, Maryland, Michigan and Massachusetts greatly restrict – or ban – the use of credit scores by insurance companies for rating policies.
“I encourage you to take similar action in your states,” Kreidler said in his letter. “It is indisputable that insurance credit scoring has become unfairly discriminatory.”
Kreidler said the emergency rule will protect those who are the most hurt financially by the pandemic from being forced to pay even higher premiums. It will also help those who will see their credit scores plummet when the federal protections on pandemic credit reporting end.
To learn more about credit scoring and insurance:
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