American Property Casualty Insurance Association & Agents Are Very Pleased With Washington State Court Ruling

OLYMPIA, Washington, Oct. 11 (TNSPol) -- The American Property Casualty Insurance Association issued the following statement:

* * *

The Independent Insurance Agents and Brokers of Washington (IIABW), the Professional Insurance Agents of Washington (PIA), and the American Property Casualty Insurance Association (APCIA) are very pleased that Judge Mary Sue Wilson has granted its summary judgment motion to invalidate Washington Insurance Commissioner Mike Kreidler's emergency rule banning credit history. This statement can be attributed to Claire Howard, APCIA senior vice president, general counsel, and corporate secretary.

"Judge Wilson delivered an important decision that reflected a deep understanding of the briefing and arguments presented. APCIA argued that the Commissioner failed to satisfy the requirements necessary to adopt a rule on an emergency basis and side-step the statutory rulemaking process that requires notice and comment from those who would be affected by the rule.

"This emergency rule has been stopped because there was no emergency regarding the use of credit history. However, the Commissioner's permanent rulemaking process to adopt a rule banning credit history for three years continues. We believe the Commissioner lacks the authority to ban credit history because two preexisting statutes in Washington explicitly authorize insurers to use it and he has no power to overturn or suspend statutes.

"Since the imposition of Commissioner Kreidler's emergency rule, which was just deemed invalid, seniors, many of whom are on fixed incomes, have been disproportionately and negatively impacted, and the emergency rule resulted in higher premiums for more than one million Washington residents.

"Now it falls to the Office of the Commissioner to promptly and appropriately address the question of what happens with the rates put in place as a result of the Commissioner's invalid emergency rule, and whether he can undo the harm to those who were unfairly and adversely affected by his unlawful emergency rule."