Insurers_ Credit Score Use Criticized

This is definitely a topic that raises the ire of consumers. What in the heck does a credit score have to do with insurance? That’s what consumers often ask. In North Dakota a bill is making its way through the Senate that, if passed, would prevent insurers from using credit scores to set premiums. From the INFORUM:Sen. Tracy Potter, D-Bismarck, introduced the bill. He said that for insurance companies to raise rates for people who have trouble paying their bills “is just piling on.” People’s car insurance rates should be based on their driving record, he said.“There’s no redress for this,” Belisle told the Senate Industry Business and Labor Committee. “There’s nothing to be done unless you change the law.”The insurance industry, of course, opposes the legislation. What’s more, if the legislation does pass, insurance companies say that premiums would go up for most people.