American Property Casualty Insurance Association: Judge Signs Order to Consolidate Legal Challenges to Permanent Rule Banning Use of Credit-Based Insurance Scores

OLYMPIA, Washington, April 1 (TNSPol) -- The American Property Casualty Insurance Association issued the following news release:

Earlier this week, on March 29, 2022, Judge Indu Thomas formally issued a stay on Insurance Commissioner Kreidler's permanent rule banning the use of credit-based insurance scores, which has disrupted the insurance marketplace for consumers and is raising rates for more than a million Washington consumers.

In February 2022, the American Property Casualty Insurance Association (APCIA), along with co-petitioners the Professional Insurance Agents of Washington (PIA), and the Independent Insurance Agents and Brokers of Washington (IIABW), filed a petition in Thurston County Superior Court challenging Insurance Commissioner Mike Kreidler's permanent rule banning the use of credit-based insurance scoring. The National Association of Mutual Insurance Companies (NAMIC) separately filed its own petition, and the court consolidated the cases at the joint request of APCIA, PIA, IIABW and NAMIC.

This joint quote can be attributed to all four trade associations (APCIA, PIA, IIABW and NAMIC) filing these legal challenges.

"Commissioner Mike Kreidler's rulemaking activity is raising rates for more than a million Washington consumers. We are pleased the court consolidated the legal challenges, transferred the separately filed petitions to a single court, and approved an immediate stay on the permanent rule. The stipulated stay has now been formally signed by the judge, and the effect of the stay is that credit-based insurance scores will continue to be available for use in Washington state through a decision on the merits and any subsequent appeals. We look forward to explaining our legal arguments against the onerous and unnecessary permanent rule that ignores the fundamentals of risk-based pricing and is raising premiums for lower risk Washington consumers."