The use of credit information by insurers is a statistically valid indicator of insurance risk, and the use of credit as a factor in insurance scoring saves consumers money on their insurance. Removing the consideration of credit as one of many factors in an insurance decision will actually hurt consumers. The value of credit-based insurance scores is a key part of our message to insurance commissioners in West Virginia and Colorado. We deeply appreciate the need to help consumers during this financial crisis, but there are better ways to offer than help than banning adverse credit information.
In May 2020, CDIA filed a comment with the West Virginia Offices of the Insurance Commissioner on its OIC Bulletin 20-12 – Insurance Scoring for Personal Lines, which includes limitations on the use of certain collections in credit-based insurance scores. CDIA also filed a comment to the Colorado Division of Insurance expressing concern for a DRAFT Bulletin No. B-5.4X, which would limit the consideration of adverse credit information in credit-based insurance scores.