A Michigan judge has thrown out Office of Financial and Insurance Service (OFIS) rules directing rate roll-backs and banning use of credit-based insurance scores in underwriting, according to Insurance Journal. Mich. Judge Rules Insurance Scoring Ban Illegal According to the Journal, the judge's opinion included the finding that the evidence clearly established "that on average a policyholder with a higher insurance score presents lower risk and lower expense, due to a lower number of claims, than a policyholder with a lower insurance score. Since rating plans utilizing insurance scores measure differences in risk that have a probable effect on losses or expenses, such plans are clearly authorized by the Insurance Code."
Posted by dougsimpson at April 27, 2005 03:09 PM