Insurance credit scores in Michigan
From the Michigan Supreme Court: “The Court will also hear oral arguments in Insurance Institute of Michigan v Insurance Commissioner, in which the plaintiffs, a group that includes insurance companies and individual customers, challenge administrative rules aimed at prohibiting insurance scoring, the practice of using consumer credit report scores to set personal insurance rates.”
The Insurance Institute of Michigan states, “A 2007 study by the Federal Trade Commission found that credit-based insurance scores are effective predictors of risk under auto policies.
The Michigan Office of Financial and Insurance Regulation contends, “Credit information has been found to contain such a high rate of errors that there is an unacceptable likelihood that persons will be misclassified,” and cites studies by U.S. PIRG and the Consumer Federation of America.
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