American Property Casualty Insurance Association Calls on Commissioner Kreidler to Let Emergency Ban Expire and Stop Rate Increases for Over a Million Washington Policyholders

OLYMPIA, Washington, July 31 (TNSOps) -- The American Property Casualty Insurance Association issued the following news release:

The American Property Casualty Insurance Association (APCIA) submitted comments in opposition to pending regulations which will make Commissioner Kreidler's emergency regulations banning the use of credit-based insurance scores permanent for three years. APCIA is calling on the Office of the Insurance Commissioner (OIC) to let the temporary ban expire at the end of the 120 days.

"Under Commissioner Kreidler's regulations many lower risk policyholders may pay more for insurance, while people who are higher risk drivers, renters and homeowners, may pay less," said Mark Sektnan, APCIA vice president for state government relations. "That's the opposite of how insurance pricing works. Rates must, according to the law, reflect future losses and related claims costs. Credit-based insurance scores (of which credit history is a part) are important tools for projecting future losses and costs. The Commissioner's regulations go too far and are hurting many policyholders struggling to recover from the pandemic and seniors living on a fixed income."

"Commissioner Kreidler's regulations are not authorized under Washington law and there is no emergency that justifies the regulations," said Sektnan. "Commissioner Kreidler has arbitrarily prohibited insurers from considering one of the most predictive and accurate rating factors available and his regulations are disrupting Washington's insurance market. Over one million policyholders are expected to see double-digit increases when they open their renewal letters because of these regulations."

APCIA's comment letter calls for insurers to be permitted to reinstate their previously approved rates and continue to utilize credit history (which is specifically authorized by statute) in their underwriting and rating practices. Washington law requires rates to be related to the risk of loss.

Comments: https://www.apci.org/attachment/static/4543