WASHINGTON–The reliability and appropriateness of using creditscores to rate insurance customers came under fire by a HouseCommittee yesterday.
Questions about the process by members of a House FinancialServices Subcommittee followed a Federal Trade Commission Reportthat found credit scores to be an accurate predictor of loss riskfor auto insurance, but also potentially discriminatory.
“Our objective is to shed light on the growing, but oftenhidden, use of credit information in the pricing and underwritingof insurance and to start analyzing, discussing and determiningwhether that is fair or whether it even makes sense,” said Rep. MelWatt, D-N.C., the chairman of the Financial Services Subcommitteeon Oversight and Investigations.
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