Credit Ban Rule
Posted on October 14, 2021 at 04:56 PM
Insurers to Kreidler: Help Consumers Today – Withdraw Your Proposed Permanent Credit Ban Rule
OLYMPIA, WA – In the wake of last Friday’s Thurston County Superior Court ruling invalidating Insurance Commissioner Mike Kreidler’s “emergency rule” on insurers’ use of credit information to set rates, trade associations representing insurers, agents and brokers who serve the vast majority of Washington’s auto and property insurance policyholders today called on Kreidler to withdraw his nearly-identical proposed permanent rule and stop the chaos he has created in the market.
The American Property Casualty Insurance Association, the Professional Insurance Agents of Washington, the Independent Agents and Brokers of Washington, and the National Association of Mutual Insurance Companies, who successfully challenged the Commissioner’s emergency rule, were joined by NW Insurance Council in issuing this statement today.
“Judge Mary Sue Wilson’s ruling is clear: Commissioner Kreidler had no good cause to impose an emergency rule that has resulted in massive rate increases for an estimated million or more–Washington insurance policyholders.
“Insurance companies were forced by the Commissioner’s emergency rule to file new rate plans that removed the use of credit-based insurance scores, for all policies initiated or renewed on or after June 20, 2021. His order required insurers to remove scores that had been saving people – in many cases retired Washingtonians on fixed incomes – hundreds of dollars on their home and auto insurance each year.
“However, anticipating the temporary emergency rule would expire , Commissioner Kreidler had already proposed a permanent rule to replace the emergency rule. The permanent rule is currently scheduled for public comment on November 22, a hearing on November 23, with November 24 as the Commissioner’s announced deadline for adopting the permanent rule. This threatens once again to cause massive rate increases and further market disruption for consumers.
“Commissioner Kreidler’s rule created hardship and frustration for more than a million Washington policyholders. Like the old glassware shop signs used to say: ‘If you break it, you own it.” Commissioner Kreidler broke Washington’s insurance market. He should own that – and fix it. Withdrawing his proposed permanent rule so insurers can return to their formerly approved rates is the right first step in repairing the marketplace. He should do so immediately.”
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