A Washington state decide has struck down a state rule banning using credit-based insurance coverage scores.
On Monday, Choose Indu Thomas rendered a closing order declaring that Washington state Insurance coverage Commissioner Mike Kreidler exceeded his authority when he issued a everlasting rule prohibiting using credit-based insurance coverage scores. Indu initially dominated towards the insurance coverage commissioner from the bench on July 22. The entry of the ultimate order on Monday marked the top of the rule.
“Commissioner Kreidler’s rule disrupted the Washington insurance coverage market and compelled over one million policyholders to pay larger insurance coverage charges. Right now’s closing order is a vital victory for Washington shoppers, significantly lower-risk senior policyholders who have been compelled to pay extra to subsidize higher-risk policyholders as a result of the rule eradicated using credit score,” stated a joint assertion launched by the 4 commerce associations that filed a problem to the rule – the American Property Casualty Insurance coverage Affiliation, the Unbiased Insurance coverage Brokers and Brokers of Washington, the Nationwide Affiliation of Mutual Insurance coverage Firms, and the Skilled Insurance coverage Brokers of Washington.
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“We’re happy the courtroom thought-about our authorized arguments and agreed that the commissioner exceeded his authority when he put forth a rule to ban using credit-based insurance coverage scores for an indefinite time however for a minimum of three years,” the associations stated. “Choose Thomas agreed with our arguments that Commissioner Kreidler exceeded his authority when he acted opposite to the longstanding statute that has approved using credit score within the property and casualty insurance coverage area.”