An insurance score - also called an insurance credit score - is a numerical point system based on select credit report characteristics. There is no direct relationship to financial credit scores used in lending decisions, as insurance scores are not intended to measure creditworthiness, but rather to predict risk. Insurance companies use insurance scores for underwriting decisions, and to partially determine charges for premiums. Insurance scores are applied in personal product lines, namely homeowners and private passenger automobile insurance, and typically not elsewhere.
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Famous quotes containing the words insurance and/or score:
“In taking out an insurance policy one pays for it in dollars and cents, always at liberty to discontinue payments. If, however, woman’s premium is a husband, she pays for it with her name, her privacy, her self-respect, her very life, “until death doth part.””
—Emma Goldman (1869–1940)
“Women who are either indisputably beautiful, or indisputably ugly, are best flattered upon the score of their understandings; but those who are in a state of mediocrity are best flattered upon their beauty, or at least their graces: for every woman who is not absolutely ugly, thinks herself handsome.”
—Philip Dormer Stanhope, 4th Earl Chesterfield (1694–1773)