IMPORTANT UPDATE
Final Written Order Permanently Overturns Credit Scoring Rule
UPDATE: A Washington Judge made the final order to overturn the insurance commissioner’s credit scoring ban on setting rates in August. Judge Indu Thomas found that insurance commissioner, Mike Kreidler exceeded his authority when he issued the ban, due to a specific state statute that allows insurers to use credit scoring.
Kreidler says he will not appeal judge’s final decision to overturn rule
Some insurers already reverted to the use of credit scoring when the ban was overturned earlier in the case after Judge Mary Sue Wilson found that he did not have good cause to issue it. At that time, Kreidler continued to fight the court’s decision. Now, his office says they will not appeal.
Though Thomas overturned the ban, her oral ruling included support for the intent of the rule:
“The record reflects and the court does not question whether that rule protects Washington residents who are entitled to be free of improper discrimination in how their insurance rates are set. It is well established that there is an undeniable link between race and poverty, and any policy that discriminates based on creditworthiness correspondingly results in a disparate impact on communities of color. The temporary rule does in fact protect from such discrimination.”
Kreidler expressed appreciation for Thomas’s affirmation of the rule and his hope that the issue would be further addressed in the state legislature:
“The court clearly understood that any policy that discriminates based on creditworthiness harms communities of color. I hope those elected to serve all Washington consumers will listen to every policyholder impacted by this unfair practice.”
The ban was heavily opposed because it resulted in higher premiums for over 1 million Washington residents, many of whom are senior citizens living on fixed incomes. This recent decision to overturn further eliminates the rule, giving all insurers the option to go back to using credit scores to determine insurance rates.
Read the full article here.
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We would be happy to schedule a time to discuss any concerns or how this may impact your rates. Give us a call at 888-303-3230. As your insurance partner, we are committed to act as an advocate to protect what’s in your best interest. Thank you for choosing Basin Pacific Insurance.
Should you have any questions regarding your current coverage or want further information on these points, Basin Pacific Insurance is here for you. Contact us today at [email protected] and your agent will be in touch shortly.
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