50-Plus Insurers Met Deadline to Comply With Washington’s Credit Rule May 7, 2021
Washington Insurance Commissioner Mike Kreidler announced today that more than 50 insurance companies met the May 6 deadline to file rating plans that comply with his emergency rule to temporarily prohibit the use of consumers’ credit scores.
A temporary ban on the use of credit scores for insurance takes effect June 20. Companies that failed to meet the deadline are in violation of state law and are subject to disciplinary action by Kreidler’s office.
Roughly 200 companies are licensed to sell auto, homeowner and renter insurance in Washington. However, not all companies licensed to sell property/casualty policies offer them in the state, according to Kreidler’s office.
A Thurston County Superior Court judge denied an insurance industry request to halt an emergency rule that temporarily bans the use of insurance credit scoring in Washington last Friday.
The Independent Insurance Agents and Brokers of Washington (IIABW), the Professional Insurance Agents of Washington (PIA) and the American Property Casualty Insurance Association (APCIA) joined together in a legal action to attempt to halt the emergency rule.
Claire Howard, senior vice president of APCIA, said:
“Commissioner Kreidler has taken an extreme action that exceeds his authority, bypasses the legislature, and robs consumers of the benefits of a highly competitive private market. Since 2002, the legislature has explicitly authorized insurers’ use of credit history. Commissioner Kreidler is incorrect in his position that credit scores are unreliable because of the pandemic. A report by Lexis Nexis Risk Solutions demonstrates that credit scores overall remained stable during 2020