Is Credit Scoring Ethical?

For NU's next column on “A Question of Ethics,” we'll focus on the use of credit history to help insurers underwrite auto and homeowners policies. Credit scoring has generated tremendous controversy and put the industry on the hot seat. Is it ethical to force an unpopular rating factor on the public–particularly if critics contest the accuracy of the information, and question the disparate impact its use might have on low-income and minority groups? And what are the ethical demands made on agents and carriers in explaining the use of this factor as a rating criterion? Please file your comments here on my blog. (If you prefer to remain anonymous, that's fine–just leave your name off…But please tell me what you do in the industry–whether you are an agent, underwriter, claims, etc.)