Credit-based insurance scores

• 5/22/05 update
  • Come and get it
    • Free "C.L.U.E. Personal Property Report" and "Auto Report." ChoicePoint Attract Insurance Scores.
    • ChoicePoint FAQ: "What reports can I obtain for free from ChoicePoint under the FACT Act?" (auto, personal property, employment, tenant)
    • ChoicePoint's take: FACT Act Compliance
    • ChoicePoint Insurance Score FAQ
    • More on C.L.U.E reports at creditaccuracy.com
  • The Federal Trade Commission
    • "FTC Requests Comments to Aid "Credit & Insurance Score" Study (69 FR 34167; 06/18/04)"
    • TDI [Texas Dept. of Insurance] Credit Scoring Study
    • Public Comments: # 123 Fair and Accurate Credit Transactions Act of 2003: Methodology and Research Design for Conducting a Study of the Effects of Credit Scores and Credit-Based Insurance Scores on the Availability and Affordability of Financial Products
  • Washington State: "Questions and Answers on Credit Scoring and How Insurers Use Credit Information"
  • A random chart on the State of Michigan web site shows those with incomes of $40,000 to 49,000 have the lowest scores.
  • ChoicePoint: "A story in The Wall Street Journal on May 3 incorrectly reports that, in relation to the recent fraud incident, that data had been illegally downloaded on millions of people."
  • Cause/effect
    • SmartMoney.com: "Someone having financial problems could be under more stress, which could lead to more accidents, explains Clarence Smith of Conning's insurance-research division."
    • Pasadena Star-News commentary: The Montebello Democrat's brother, Tom Calderon, received fat campaign contributions from the insurance industry in his failed 2002 bid for state insurance commissioner... Ironically, those with more credit cards -- and therefore a larger possible debt load -- are scored higher than those with one card or none." (number of cards, 1997: see Letters)
    • the Patriot-News, Harrisburg, PA: "'I was furious,' said Matarango, who lives in Mechanicsburg. Erie Insurance Group had been providing her home and car insurance since 1964."
  • The Insurance Information Institute
    • "Actuarial studies show that how a person manages his or her financial affairs, which is what an insurance score indicates, is a good predictor of insurance claims." ("The mission of the Insurance Information Institute (I.I.I.) is to improve public understanding of insurance -- what it does and how it works.")
    • Credit FAQs
  • American Insurance Association
    • Credit-based insurance scores
    • Brochures & Educational Materials
    • Studies, Papers, Presentations & News Releases
      • "There were not any News Releases found for the Year 2005."
      • Presentations & Testimony
  • Insurance Scoring, The Retro Guide
  • Allstate
    • Explanations: "Why Does Allstate Use Credit Information to Evaluate Insurance Policies?"
    • "Professional" on the secret system needed. Any takers? "[Allstate's] Mellander recommends that a consumer who is asking questions about how much this or that is going to affect a credit score should "contact a professional or a financial adviser who can give them some honest, solid advice."
  • NATIONAL ASSOCIATION OF REALTORS, 8/16/04: "It is important for the FTC study to point the way towards the elimination of artificial barriers to homeownership presented by untested models and inaccurate data limiting the availability of property and liability insurance."

• Previous items:
  • WashPIRG: Opinion - Credit scoring highly unfair - "In fact, you could have paid every insurance bill you ever received on time and never filed an insurance claim, and you could still have a bad credit score that would either make you pay significantly more for insurance or prevent an insurance company from offering you insurance coverage."
  • Channel 7, Denver: Credit Score Could Affect Your Car Insurance - Check Your Credit Reports To Make Sure That All Information Is Accurate
  • Smartmoney.com: Insurance: 10 Things Your Insurer Won't Tell You - "Twelve states now have laws that limit the use of credit scores in auto insurance."
  • Use of Credit Reports in Underwriting Requires Basic Understanding of Statistical Evidence - "... underwriters must be able to effectively evaluate the efficiency of credit scoring models..."
  • Credit Scoring And Auto Insurance Rates: A Senseless Combination!
  • Automobile Insurance Quotation Form - "NOTE: Many insurance companies are giving further discounts based on information obtained through a system of financial scoring. We don't necessarily agree with this system, but we are in favor of LOWER PREMIUM RATES!..."
  • Fair, Isaac - "... CompScore enables you to access, in one score, three powerful indicators of risk: motor vehicle reports, Comprehensive Loss Underwriters Exchange (C.L.U.E.) and consumer credit information... "
  • Auto insurance quotes - Select credit rating: Poor, Fair, Good, Excellent
  • What your auto insurer knows about you - "Sources tell insure.com that the credit scores — which are basically your full credit report boiled down to one number — are flawed and insurance companies know it, but they continue to use them."