USE CREDIT INFO FAIRLY, IIABA SAYS

The Independent Insurance Agents and Brokers of America (IIABA) wants insurers to proactively adopt and implement fair-minded and appropriate business practices regarding their use of credit information. The agent/broker association says it “recognizes that consumer credit information is a powerfully predictive tool for insurance companies,” and wants to work with insurance companies to establish a reasoned, responsible approach to the use of credit information. In an IIABA Board-approved policy statement, the association outlined several steps the IIABA believes will help “restore confidence in credit scoring practices.” They include: •In the event that an adverse action is taken due to a consumer’s credit history, provide the consumer with a list and meaningful description of the primary factors for that determination. •Treat an individual’s lack of credit history or credit-related score neutrally or otherwise refrain from penalizing such consumers. •Consider other applicable underwriting factors beyond credit information or credit-related scores when evaluating whether to underwrite, deny, cancel or non-renew insurance policies. •Re-underwrite and re-rate a consumer’s insurance policy within 30 days after being notified by a credit bureau of a correction in his or her credit history. •Hold agents harmless from civil and administrative actions and liability, costs and fees when those agents’ actions are consistent with company procedures. The IIABA is also calling on credit bureaus, credit reporting agencies and providers of credit-related scores to: •Recognize that independent agents and brokers own their expirations, and therefore not share, sell or otherwise utilize any data or information provided in the credit scoring or insurance application process for any purpose other that that for which it is provided. •Recognize the importance of maintaining accurate records and undertake efforts to ensure that data is current and correct.