Insurance Credit Scoring Assitance

[jaybird]

Gee, words like "credit" or "insurance score" brings out the worst in bleeding heart liberals.

[fdbyrne]

Brandy,

I didn't address the life circumstances statement because I've already addressed it. Below is a segment from post that I made yesterday.


"2) People that are chronically ill, lost a job, suffered the loss of a spouse, were recently divorced or pretty much any other bad thing that can happen to a person are protected by the Fair Credit Reporting Act. Under that legislation the person in question can send in proof of their situation and their insurance company is required by law to overlook the negative information found in their credit report. "

[fdbyrne]

Amen, jaybird.

The really funny thing is that the Fair Credit Reporting Act which gives insurance companies the right to use credit was passed by a Democratic congress.

[Brandy]

Okay so now you guys are going to bring politics into this......WHAT-EVER. I am not now nor have I ever been a bleeding heart liberal I just don't agree with this scoring crap.

you reposted:
"2) People that are chronically ill, lost a job, suffered the loss of a spouse, were recently divorced or pretty much any other bad thing that can happen to a person are protected by the Fair Credit Reporting Act. Under that legislation the person in question can send in proof of their situation and their insurance company is required by law to overlook the negative information found in their credit report. "

Hate to say it but insurance underwriters don't care and don't change ratings when these things are submitted. An underwriter in a lending institution will to get the loan to qualify. Again, changes made in favor for the company not the client.

[independent guy]

It means that for some unexplainable reason the type of person that is drawn to buy a red car is not as good of a driver on average as a person that is comfortable with buying a beige or silver car. It's not the fact that it's red that increases the likelihood of an accident.

Eh, I bought a bright red car when I was 16, and I never wrecked it. Red is a flirty, high-energy color. I don't think its so much an issue of driving skill, as it is regard for the law, obeying the appropriate speeds, and paying attention to what's around you. I'd buy another bright red car if they weren't such cop magnets. Cops just love to point their radar/laser guns at them. Is that factored into any statistics?

[independent guy]

Hate to say it but insurance underwriters don't care and don't change ratings when these things are submitted. An underwriter in a lending institution will to get the loan to qualify. Again, changes made in favor for the company not the client.

Brandy, there are exceptions to what you've said!

[fdbyrne]

Independant guy, I'm sure that you are right about the cops thing. I too have owned red cars and drove them just like I drove the rest and for some reason I was pulled over more in my red cars.

It should be noted that people buy cars for different reasons. Some people buy red cars because they like the color, some buy them to stand out (which we've already determined they do quite well), and some people buy used cars and don't necessarily have a choice in the color. I never said that all red cars are wrecked or that all people that drive them have wrecks. I was saying that if you have 100,000 red cars of various makes and 100,000 silver cars the group of red cars will have more wrecks than the other group. I can't, nor would I ever say, that any person that buys a red car is going to be in a wreck.

Brandy, all insurance companies have to make these exceptions. It's not a choice, it's an enforcable law that they have to. Being that I've worked in home offices for years I can say from experience that upper management comes down like the hammer of God on any underwriter that puts them at risk for lawsuit or fines by not being in compliance. I can't say that all insurance companies offer these exceptions, but if they don't they are breaking the law. Mine does and being an independant agent I'd say that many of your do too. You may want to take a look into that.

[yoyowordup]

Fight nice children!

Independant guy - you should really try to spell independent correctly if you are using it as your name (and also if you are an independent agent and member of Big I).

I like credit scoring. It seems that my more responsible clients pay their bills on time and are more responsible in everything they do. This would mean that their vehicles are better maintained and their business are run better. This usually adds up to a better risk in my opinion.

[independent guy]

Independant guy - you should really try to spell independent correctly if you are using it as your name (and also if you are an independent agent and member of Big I).

I found the spelling error after having created the name and there's no way for me to change it now!

[jaybird]

It has been my experience as well that clients with good insurance scores are more responsible. Saves time & money in the log run. Less cancellations for non-pay & less hassle trying to collect money or info needed. Don't have many clients who raise a stink about it. The only ones who I hear complain are those that have bad credit.

[fdbyrne]

I'm glad to see some agents that are happy about insurance scoring. In my line of work I usually only hear from the unhappy ones.

Also, I'm not trying to be a jerk in my arguments. I just enjoy a good debate about a controversial topic.

[CATHIEA]

Let me first say ... Go Brandy...
And to fdbyrne, apparently you don't write with Hartford - one of the components they use is payment of utility bills. Every company has their own formula they use in addition to the credit score. I'm glad for you to have such faith in your opinions - just be nice when others don't agree.

[Brandy]

Gee, did the Cyber Cops show up or something, everyones being so Nice

Independent Guy,
I'm sure there are underwriters out there who would infact change a rating with proof, I just have never had the pleasure of working with any of them and all my underwriters LOVED me, I could get just about anything I wanted for my clients as long as I played by the rules. However, not one would budge on a score or a C.L.U.E. report for that matter. If it's the law then the UW should be correcting that before issueing a policy.

fdbyrne,
Not sure what part of the Country you're in and that could have something to do with it but here in Tulsa OK area a great majority of these people do complain about it. Especially the older generation who don't understand why their SS# has anything to do with insurance. After years of hearing the complaints I started understanding their point of view (not the dead beats but the older generation). Most of them had good credit scores, they just didn't like the idea that the insurance company was now judging their insurability by their credit.

Jaybird and YoYo
I agree with all of you that yes a better credit score does mean the client is much much more likely to pay thier bills on time because they are more responsible then say that kid who just moved out on their own. I just don't agree with it not because I have bad credit but because it hurts people trying to climb out of that debt or problem in their life that maybe they didn't intentionally cause. If they can't pay the premium then give the a Non-Standard policy and let them pay the higher rate.

Bleeding Liberal Signing Off

[Brandy]

CATHIEA

Okay gotta ask, I've never seen my utility bill on my credit report and was unaware of this information even though I have written for the Hartford (but prefer Hanover). How do they get information on Utility bills when it's not on the credit report?

[darnovak]

I bookmarked the links and will read the documentation found at each and get back to this thread when I have finished. These appear to be very informative and I can't wait to digest what is in them. regards to all.