Survey: Credit Scoring A Rate Factor

NU Online News Service, March 31, 9:40 a.m.EST?In a new online poll conducted by the Kansas insurancedepartment, more than half of Kansans participating in the surveysaid credit scoring was a factor in their increased auto andhomeowners insurance rates.

Among 524 individuals who have responded so far, 457 people, ornearly 90 percent, said their auto and homeowners insurance rateshave gone up in the past year, and 269 respondents said they weretold by agents credit scoring was a factor in their insurancepremium hikes.

The poll also found that 194 respondents did not receive anyexplanation for rate changes, while 153 people indicated they didreceive explanation from their agents after the inquiry.

"We know that some Kansans are seeing rate increases, whileothers are seeing decreases because of credit scoring," said KansasInsurance Commissioner Sandy Praeger, who organized the onlinesurvey. Ms. Praeger said she supports legislation that would allowher office to regulate the practice of credit scoring byinsurers.

"Right now, there's no regulatory authority over this practice,and Kansas consumers deserve to know how their rates aredetermined. We need a clear picture of these trends so thatlegislators can understand how credit scoring is affecting realpeople, and then adopt appropriate regulatory legislation," Ms.Praeger said.

"This survey should shine some much-needed light on thematter."

Full results from the Kansas Insurance Department's onlinesurvey can be found atwww.ksinsurance.org/creditscoring/credit_results.php.