Insurance Commissioner Won't Endorse Ban on Credit Scoring

Published on:
12 September 2006 at 10:19 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00002481-insurance-commissioner-wont-endorse-ban-o/

The state (TX) insurance commissioner said Tuesday that he won’t recommend that the Legislature ban the use of credit scores in setting insurance premiums, saying such a move could disrupt the home and auto markets.

Last month, the department released a study showing that black, Hispanic and low- to moderate-income customers generally have much lower credit scores than Anglos, Asians and higher income customers. As a result end up paying higher insurance premiums, with the discrepancy in some cases as high as 400 percent.

The study also found a correlation between low credit scores and the likelihood that people will file an insurance claim.

Insurance Commissioner JosÃ© Montemayor, in the final part of the report, said that credit scoring is not “unfairly or intentionally discriminatory” and is not based on race.

For this complete story, please visit Insurance Commissioner Won’t Endorse Ban on Credit Scoring.

Insurance Commissioner Won't Endorse Ban on Credit Scoring

Unknown Author

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