The American Property Casualty Insurance Association (APCIA) is pursuing legal action in response to emergency regulations filed by Washington state officials banning credit-based insurance scores in rating and underwriting insurance.
“APCIA and our members that write auto, home and renters insurance policies in Washington strongly oppose the unilateral action taken recently by Washington Insurance Commissioner Mike Kreidler,” Claire Howard, APCIA senior vice president, general counsel, and corporate secretary, noted via a statement. “The Commissioner’s extreme action exceeds his authority, bypasses the legislature, and robs consumers of the benefits of a highly competitive private market.”
The APCIA indicated a petition for declaratory and injunctive relief has been filed in Thurston County Superior Court, asking the Commissioner’s action be declared invalid and enjoin its enforcement.
Additionally, the APCIA maintains consumers save money when credit-based insurance scores are used to assess how much is paid for insurance. Insurance scores are not credit scores like those used by banks to offer loans or credit cards.
“Insurers use specific information about how consumers use credit as one factor to give consumers the most affordable and accurate rate,” Howard concluded. “Many other factors go into how much you pay for insurance, but not race or income. Without these tools, insurance rates could go up for more than a million Washingtonians who are already struggling to pay bills during the COVID-19 pandemic recession.”