* * *
The following statement concerns the legal proceedings initiated today by the
“APCIA and our members who underwrite auto, home and tenant insurance policies in
“That is why APCIA has taken legal action to remedy this abuse of power. A request for declaratory and injunctive relief was filed today in
“Commissioner Kreidler is trying to ban an important risk-based scoring tool that has been in place for almost 20 years for the benefit of consumers. The Commissioner is trying to get around the
“The arbitrary and capricious actions of Commissioner Kreidler will harm more than a million
“Most consumers save money when credit-based insurance scores are used to gauge the amount they pay for insurance. Insurance scores are not credit scores like the ones used. by banks to offer loans or credit cards. Insurers use specific information about how consumers use credit. as a factor in offering consumers the most affordable and accurate rate. Many other factors determine how much you pay for insurance, but not race or income. Without these tools, insurance rates could rise for over a million Washingtonians already struggling to pay bills during the recession pandemic COVID-19.
“A new report from Lexis Nexis shows that during the COVID-19 pandemic, credit insurance scores remained stable nationwide and in
Equally important, when a legislative solution was on the table to help consumers facing extraordinary life circumstances such as financial setbacks from COVID, Kreidler objected, insisting on an all-or-nothing ban. “.
“These actions go beyond the statutory authority of the commissioner, violate the separation of powers between the executive and legislative branches of government, and are in direct conflict with several existing laws, including those that regulate, but clearly allow, that credit information be taken into account by insurers.
“In addition, these regulations could cause significant market disruption at a time when the business community is working together for a long-term economic recovery.