credit scores

States Move to Ban Insurance Companies From Using Credit Scores to Set Premiums

State lawmakers in Iowa, New York, Oklahoma and Pennsylvania are proposing legislation to ban insurers from using consumers' credit history to set homeowners or auto insurance premiums. Consumer advocates argue credit-based insurance scores are unfair as they penalize people for financial hardships beyond their control, while the insurance industry argues the practice helps keep premiums low for many consumers. Currently, only California, Hawaii and Massachusetts ban the practice for auto insurance, with California, Massachusetts and Maryland banning it for homeowners insurance.