October 19, 2021
OLYMPIA, Wash. – Insurance Commissioner Mike Kreidler will seek an effective date of Jan. 1, 2022, for a permanent rule to temporarily ban the use of credit scores for insurance policies for three years.
A public hearing on the proposed rule is scheduled for Nov. 23. Kreidler rejected a recent call from the American Property Casualty Insurance Association and the National Association of Mutual Insurance Companies to abandon his commitment.
The lobbying groups made the request after a Thurston County Superior Court on Oct. 8 issued a narrow ruling against an emergency rule that took effect in June.
“The insurance industry in Washington wants to hang on to an unjust, secretive and unrealistic method to determine what consumers pay to insure their vehicles and homes,” Kreidler said. “I will continue a well-supported effort to permanently ban credit scoring. Consumers deserve better. The multibillion dollar industry needs to take action to rid itself of this unreliable practice.”
Three other states, including California, already ban the use of credit scores for insurance purposes.