Insurers Warn Washington Court Ruling Will Raise Rates for a Million Consumers
Insurer groups expressed disappointment over a judge’s ruling denying an industry request to halt an emergency rule that temporarily bans the use of insurance credit scoring in Washington.
The Independent Insurance Agents and Brokers of Washington, the Professional Insurance Agents of Washington, and the American Property Casualty Insurance Association had joined together in a lawsuit Kreidler’s ban.
The groups warned that if Judge Mary Sue Wilson’s ruling against insurers’ request for a preliminary injunction in a regulatory matter will negatively impact Washington consumers. Wilson found that industry associations challenging the rule were unlikely to succeed with their arguments, and that Kreidler demonstrated good cause for the emergency rule and did not exceed his authority as the regulator of insurance practices in the state.
“Commissioner Kreidler has taken an extreme action that exceeds his authority, bypasses the legislature, and robs consumers of the benefits of a highly competitive private market,” said Claire Howard, APCIA senior vice president, general counsel, and corporate secretary. “We are disappointed that our request for a preliminary injunction was denied today. While Commissioner Kreidler purports to protect consumers, to the contrary, well over one million Washington residents will very soon face double digit rate increases on auto, homeowners and renters insurance even though there has been no change in their individual risk profiles.”
Howard, who said the groups will be reviewing legal options and next steps, added: “We look forward to the next steps in the litigation process to overturn this preliminary trial court decision.”
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