Lower-risk insurance consumers will pay less for their homeowners' and auto insurance policies due to Alaska's recent court ruling that allows the use of credit history in insurance underwriting, according to the Property Casualty Insurers Association of America.
The move comes two years after an act was approved by the Legislature that regulated the use of credit history for insurance purposes.
After the regulation approval, Progressive submitted a proposed rate filing to the Division of Insurance, outlining its plan to renew individual policies based on credit information from when the insured's policy was initially underwritten and rated. The Division rejected Progressive's filing on the grounds that it was in violation of insurance code provisions against discrimination as well as the credit-scoring law that prohibits underwriting a policy by using a consumer's credit history. Progressive proceeded to appeal.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
