5 Insurers Asked to Testify at Florida Hearing on Credit Scoring Today
The Florida Office of Insurance Regulation will hold a public hearing this morning in Tallahassee about the use of credit scoring, credit history and credit models by insurers in the underwriting and setting of rates.
The OIR said that five insurance companies – Allstate, GEICO, Nationwide, Progressive and State Farm – were sent subpoenas requesting that corporate representatives testify.
According to the OIR meeting notice, the issues subject to testimony include:
The use of credit scoring models and credit information in underwriting and determination of rates.
Response to federal and state studies that have determined that the use of credit scores and models have a disparate impact on certain classes of people.
Actions the insurers have taken to address these concerns.
Positive and negative effects that credit scoring has had on consumers.
Efforts the insurers have taken to ameliorate or reduce discrimination based on income or race.
Detailed explanation of how each insurer uses credit scoring.
Impacts on the insurers if the use of credit scoring or credit information were prohibited.
Source: Florida OIR
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