Texas House Committee Hears Testimony on Insurance Score Ban

February 23, 2005

  • February 24, 2005 at 7:02 am
    Bob says:
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    Barb
    I have “identity recovery” which is more than “identity theft” coverage. I protect myself and my clients. However, your original concern was with credit scoring and how it was not fair to you. I consider myself a consumer advocate and advisor and this is why I am giving you additional information that may make sense to you. The more you know the better decisions you will tend to make. God Bless, love ya!

  • February 24, 2005 at 2:08 am
    Cliff McKelvy says:
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    I testified before the committee for consumers. I have been an insurance agent for 27 years. I support HB 23/SB 167. I support the ban on credit scoring issues. I know consumers are not happy with their insurance rates. Credit scoring is another segmentation of families and a subdivision of insurance risks, in my opinion. Insurance credit scoring will force families to purchase “adequate” insurance through assigned risk pools. This is against public policy and is not equitable for consumers. For my part,lower credit scored families, minorities, and potentially a great majority of consumers will subsidize those individuals with higher credit scores. Question: When major corporations, multi-billion dollar companies and/or wealthy individuals file for bankruptcy protection, yet continue to do business, who picks up their tab? BAN INSURANCE CREDIT SCORING AND IT’S PROGENY.

  • February 24, 2005 at 2:17 am
    steve says:
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    Does the fact that financial stability can be an accurate forcaster of losses count for anything or is Cliff just interested in socialized insurance? I guess trying to sell at a lower rate and still make a profit is a foreign concept to him.

  • February 24, 2005 at 2:38 am
    Hans says:
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    Credit scoring is nothing more than high-tech redlining. Trying to charge a person more BEFORE they file a claim is ridiculous and un-American. Actually, most people have good credit in that they pay their bills on time, but like me, they get beat up for: too many inquires, too many revolving accounts, too high a balance, etc. All bogus, not one late pay. If you’re going to count my revolving accounts and balances you’d better count my income. Anything else is unfair.

    P. S. Ted Turned once said he owed over $1 billion dollars…what’s his credit score???

  • February 24, 2005 at 2:56 am
    Barb says:
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    According to Choicepoint approximately 178,000 clients in 50 states have had their information leeched from their computers. They also report that the number may go as high as 500,000. There was a story in the news yesterday about how dumpster divers took 99 pages of financial information from the dumpster behind a Blockbuster in Ennis TX. The police recovered 2 pages, the other 97 pages of credit card numbers drivers license numbers etc. have already made it into the hands of identity thieves. NBC news in Dallas reports that identity thieves have at least 30 days to drain your finances and ruin your credit before anybody catches on, and you want to base my insurance premium on my credit score??? Get real people.

  • February 24, 2005 at 3:06 am
    steve says:
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    There are safeguards. The University of Texas research study shows credit scoring is a sound forecaster of future losses. why are so many concerned with giving lower rates to deadbeats? I have worked hard to protect my credit and I feel I deserve better rates.

  • February 24, 2005 at 3:15 am
    Cut the Crud says:
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    I am not a major corporation, multi-billion dollar company or a wealthy individual, nor have I ever filed for bankruptcy protection. Who am I? I am a responsible individual who spends less than I make. I don’t have 42 revolving accounts, I have ONE credit card for convenience purposes which I pay off EVERY MONTH. Thus, not spending more than I have. It’s a simple concept people. There is a correlation and it’s not discriminatory. My score doesn’t know if I’m rich or poor or what color my skin is or what God I worship or if I want to marry my Labrador Retriever. All it knows is whether I meet my obligations. Laws have been passed to address special circumstances, but that’s all we keep hearing about. Lose the straw men arguments and get over it!

  • February 24, 2005 at 3:22 am
    Bob says:
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    Barb,
    Have you sustained “Identify Theft”? You gave a bad example for not using credit scoring in rating of insurance. Use of credit scoring reduces the rates for those persons that have acted responsibily in their financial affairs (besides, experience tells us that those with bad credit will usually also not be responsible in their driving and will have numerous tickets that drives up their rate). With the protections enacted by the Legislature, credit helps only those persons, rich or poor, that happen to have good credit scoring. PS You should call your HO agent and inquire about Identity Theft protection. A valuable coverage now offered by some insurers.

  • February 24, 2005 at 3:42 am
    Noel says:
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    The insurance score has been promoted as a unbiased scientific tool to accurately predict those risk most likely to have a claim. If this is true, why can I have the same risk score a range from poor to superior when checked on the same day with three different carriers?

  • February 24, 2005 at 3:44 am
    Glenn says:
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    I don’t know about other agents, but I hate asking for a person’s SSN. It is plain scary. I don’t want it and I don’t want to know it. I do know that the insurance Lemmings will follow whoever. The big “A” said it was great so let’s follow, we can always blame them.



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