American Property Casualty Insurance Association: Insurers Encourage Consumers With Financial Difficulties to Talk to Their Agent or Company

SACRAMENTO, California, June 20 -- The American Property Casualty Insurance Association issued the following statement by Mark Sektnan, vice president for state affairs, regarding Washington Insurance Commissioner Mike Kreidler's call for a ban on the use of credit in insurance scoring:

"Improving the availability and affordability of insurance is a priority issue for the industry. That is why insurers encourage consumers who are experiencing financial difficulties as a result of the COVID-19 pandemic to talk with their insurance company or agent, lenders, and other creditors to see if accommodations can be made or if any assistance is available.

"Nearly half of the states have adopted the National Council of Insurance Legislators' Credit-Based Insurance Scoring Model Act, which includes extraordinary life circumstance exceptions to an insurer's use of credit information. This protects consumers who have medical bankruptcies and other unforeseen circumstances. In addition, the federal CARES Act provides numerous protections to consumers who have been negatively impacted by COVID 19.

"Rather than calling for a legislative ban on the of credit-based insurance scores, Commissioner Kreidler should consider adopting the NCOIL model law.

"The fairest way to determine what people pay for auto insurance is to use a variety of factors that provide insurers with a more complete picture of a consumer's potential for filing a claim or having a loss. Credit-based insurance scores provide most consumers with savings. The NCOIL model law can provide important additional consumer protections."