Fla. Insurance Commissioner Comments on Insurers’ Use of Credit Scores
Mar 19, 2009
The Office of Florida Insurance Commissioner Kevin McCarty- -March 19 2009
TALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin McCarty today issued the following statement in support of the National Association of Insurance Commissioners’ (NAIC) proposal to review insurance company use of consumer credit scores in their underwriting and rate setting processes.
“I am pleased that the NAIC’s Consumer Liaison Committee is moving forward with a proposal to schedule a public hearing on the important issue of how insurance companies use credit scoring in their rate-making processes.
“I have long advocated for disallowing the use of credit scores in the underwriting process, because it has been shown to unfairly discriminate against minorities and low-income individuals.
“The use of credit scoring in determining insurance premiums during our current difficult economic times can unfairly impact consumers struggling to keep up with their bills, and who have needed to use credits cards more than they otherwise would in better economic times.”
For more information on this issue, please visit the Florida Office of Insurance Regulation Web site: www.floir.com/CreditScoring.aspx.