NU Online News Service

SEATTLE--Regulators' interest in insurers' use of credit-based insurance scores produced lively reaction from insurance association representatives and a consumer advocate during a committee meeting on property and casualty insurance issues.

On Monday, regulators on the Property and Casualty Insurance Committee at the National Association of Insurance Commissioners' (NAIC) summer meeting here reviewed actions they are taking related to the issue of credit scoring used in underwriting personal lines risks.

Melvin Butch Hollowell, Michigan's insurance consumer advocate, addressed the committee to say that credit scoring is putting policyholders at a disadvantage as they struggle through the economic crisis. Layoffs have made it difficult for some to pay their bills, and through no fault of their own their credit scores have been lowered dramatically.