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Kreidler adopts rule banning credit scoring for three years, proposes rule to increase transparency

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OLYMPIA, Wash. – Insurance Commissioner Mike Kreidler has adopted his rule banning insurers from using credit information to set auto, homeowner and renter insurance for three years, effective March 4. In addition, he’s proposing a new transparency rule requiring insurers provide policyholders with a written explanation for any premium change.  

“I’m taking this action against insurers’ use of credit scoring in response to the economic harm many people have experienced during the COVID-19 pandemic—harm that has significantly impacted people who are already financially vulnerable,” said Kreidler. “We know that now, more than ever, credit reporting is unreliable. It is unfair to base how much someone pays for frequently mandatory insurance on an unreliable and fluctuating factor like a credit score.”