Credit Score Inquiries

[darnovak]

If I understand the use of "Credit Scoring" correctly, the purpose is to place the "risk more likely to file/have a claim" in a higher rated tier. Theoretically, the risk more likely to file a claim is an individual with a low credit score. Here are my questions:
1) Profit motive? Personal Auto: After paying the $250 or $500 or $1000 Comprehensive or Collision deductible, how does one "profit" from the claim? One would have to get a repair shop to inflate the estimate by at least $1001 so the insured could profit $1 after paying the $1000 deductible. Well, let's convict and fine them for this type of "insurance fraud" when they buy the policy instead of investigating a fraudulent claim. Guilty by credit score and you can't prove yourself innocent - don'tcha love this country?
2) If "profit" is not the motive for "being more likely to file a claim", there must be one or more other motives. Anyone know what these are? I went over some of the "studies" and could not find any reference to the motives of the low credit score folks who are more likely to file/have claims.
3) Anyone who has filed an auto claim (of any type) in the last several years knows the experience is no "bed of roses". You are fortunate to be indemnified 100%. So do folks with "low credit scores" just love to get involved in the claim process for some strange reason? Do they like paying deductibles? Experiencing coinsurance penalties? If they have ever been through the claims procedure, it is not something desirous - but is a necessity at times.

I am still looking for a scientific "study" done by a recognized disinterested professional competent entity that has published a definitive report proving that credit score has a direct influence on or a relationship to insurance risk. I have yet to hear of such research. I welcome constructive comments and references to any research done. The only research I have come across so far goes like this: One day some outfit looked at 10,000 insurance claims and then retrieved the credit scores of the 10,000 individuals that had filed the claims and created some kind of spreadsheet and looked at it and someone exclaimed "Gosh, the majority of those claims were filed by people who have/had low credit scores! All we have to do is look at an applicant's credit score and if it is low, the odds are they are going to file a claim." Shazam! Credit Scoring was created.

4) Last question: What data does Experian (or any of the other credit bureaus) have in your credit file and utilizes to determine your credit rating that any P&C Carrier actuary has ever used (prior to the miracle invention of credit scoring) to determine property or casualty insurance risk?