American Property Casualty Insurance Association: Seniors Protest Insurance Rate Hikes Caused by Commissioner Kreidler's Emergency Regulations

SACRAMENTO, California, Sept. 22 (TNSPol) -- The American Property Casualty Insurance Association issued the following statement:

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The following statement by the American Property Casualty Insurance Association is in response to a hearing held Tuesday by the Washington State Senate Committee on Business, Financial Services and Trade. The hearing focused on the consumer impact of Insurance Commissioner Mike Kreidler's emergency regulations prohibiting the use of credit history. This statement can be attributed to Mark Sektnan, APCIA vice president of state government relations.

"Today, the Washington State Senate Committee on Business, Financial Services and Trade heard presentations from various consumers and others affected by Commissioner Kreidler's March 22, 2021, Emergency Rule prohibiting the use of credit history in personal auto, homeowners and renters insurance. These presentations confirmed that:

* Commissioner Kreidler's ban has disproportionately impacted senior citizens, many of whom are on fixed incomes, and resulted in higher premiums for over 1 million Washington residents.

* Commissioner Kreidler's ban on credit history results in lower risk policyholders subsidizing higher risk policyholders.

* The use of credit history in underwriting is highly predictive and reliable in determining the likelihood of losses, enabling insurers to price risks appropriately.

* This ban has "disrupted" the insurance market in Washington as Commissioner Kreidler's staff conceded at the hearing.

"APCIA will continue to challenge the ban on credit history in Washington state court, in order to protect the integrity of accurate pricing and bring back stability to the market for consumers in Washington."