On March 22nd, the Washington Office of Insurance Commissioner (“OIC”) issued an Emergency Rule banning credit scoring on all personal insurance policies related to private passenger automobile coverage, renter’s coverage, and homeowner’s coverage issued in the state of Washington.
All applicable insurers shall not use credit history to determine personal insurance rates, premiums, or eligibility for coverage. Insures subject to this rule may substitute any insurance credit score factor used in a rate filing with a “neutral” rating factor. According to the WA OIC, a “neutral factor” means a single constant factor calculated such that, when applied to all policies in an insurer’s book of business, total premium for an insurer’s book of business will remain unchanged.
The Emergency Rule takes effect immediately and shall remain in effect for three years (until March 2022) following the day the national emergency was declared on March 13, 2020.
For additional details regarding this matter, the Emergency Rule can be found HERE.
For any other information regarding this Rule, or questions regarding our Personal Lines compliance services, please do not hesitate to contact us.