Insurance Companies to Continue Credit Scoring

Judge Fisher overturned Michigan Insurance Commissioner, Linda Watters' new rules prohibiting insurance companies from using credit ratings to determine premiums.

Associated Press: "Insurance companies can continue using customers' credit scores to determine their home and automobile insurance rates under a decision issued Monday by a Barry County Circuit Court judge. Judge James H. Fisher's decision prevents the state from going ahead with its ban on the use of credit scores to set the insurance rates of Michigan customers. It came several days before insurers were supposed to present new rate calculations to the state on May 1...Fisher agreed with the insurance industry that state Insurance Commissioner Linda Watters overstepped her authority when she filed new rules reducing base rates and barring insurance companies from providing discounts to policyholders with good credit ratings."

Posted by Angie on April 25, 2005 | 0 Comments

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