It's about time

Some news from the Tampa Tribune

TAMPA - Florida regulators plan to implement new rules starting Sept. 1 that likely would end the practice of auto and homeowner insurance companies charging higher rates or refusing coverage for those with poor credit.

The new rules require insurers to prove that the use of credit information does not disproportionately affect persons of any race, color, religion, gender, age or place of residence, Florida Insurance Commissioner Kevin McCarty said Tuesday.

Insurers say the new rule would end credit scoring. That's because insurers cannot prove they don't discriminate since they don't collect data such as race and religion.

Insurance trade associations have been challenging the new rule in state court and before the Florida Division of Administrative Hearings.

McCarty said, however, that he had been authorized by the Florida Cabinet to begin implementing the rule. He said the Cabinet, which includes the governor and top officials, didn't want litigation to prevent reforms.

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Insurers say their data show that those with poor credit file claims at a higher rate than those with good credit.

I never understood the use of credit histories for insurance rates. How does poor credit mean poor driving or a risky home? This practice should have been ended long ago.

The insurance companies will adjust and change tactics. My father had a saying- "You can never beat banks, lawyers or insurance companies."

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