Support and Opposition
The use of credit information in insurance pricing and underwriting is heavily disputed. Proponents of insurance credit scoring include insurance companies, the American Academy of Actuaries (AAA), the Insurance Information Institute (III), and credit bureaus such as Fair Isaac and TransUnion. Active opponents include many state insurance departments and regulators, and consumer protection organizations such as the Center for Economic Justice, the Consumer Federation of America, the National Consumer Law Center and Texas Watch. As a result of successful lobbying by the insurance industry, credit scoring is legal in nearly all states. The state of Hawaii has banned all use of credit information in personal automobile underwriting and rating, and other states have established restrictions. A number of states have also made unsuccessful attempts to ban or restrict the practice. The National Association of Insurance Commissioners has acknowledged that a correlation does exist between insurance scores and losses, but asserts that the benefit of credit reports to consumers has not yet been established.
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Famous quotes containing the words support and, support and/or opposition:
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—David Hume (1711–1776)
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“It is useless to check the vain dunce who has caught the mania of scribbling, whether prose or poetry, canzonets or criticisms,—let such a one go on till the disease exhausts itself. Opposition like water, thrown on burning oil, but increases the evil, because a person of weak judgment will seldom listen to reason, but become obstinate under reproof.”
—Sarah Josepha Buell Hale 1788–1879, U.S. novelist, poet and women’s magazine editor. American Ladies Magazine, pp. 36-40 (December 1828)