An insurance industry group is suing to stop a statewide ban on using consumer credit scores to help determine auto, home, and renter insurance rates.
State Insurance Commissioner Mike Kreidler recently passed an emergency order prohibiting the practice, which he says unfairly boosts rates for minorities and the poor.
The American Property Casualty Insurance Association filed a lawsuit, Wednesday, in Thurston County Superior Court that seeks to keep the order from taking effect on new and renewed policies on June 20, 2021.
“The Commissioner’s extreme action exceeds his authority, bypasses the legislature, and robs consumers of the benefits of a highly competitive private market,” APCIA Senior Vice President Claire Howard said in a written release.
WA Rep: Banning credit scores for insurance would lead to rate increases
“I’m frankly surprised,” Kreidler told KIRO Radio in response to the lawsuit. “The principal duty and responsibility of this office is to protect insurance policy holders.”
He says many have endured financial hardship during the pandemic, and if that hasn’t shown up on their credit scores yet, it will eventually when government protections put in place during the pandemic run out.
“People who’ve been able to not have to make their mortgage payments and the like — that’s still going to come back at some point and be a part of their financial record and work against them,” Kreidler pointed out.
The APCIA claims that without being able to consider credit, rates will increase for many more consumers.
“Without these tools, insurance rates could go up for more than a million Washingtonians

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