McCarty backs trade group on rate criteria
Mar 23, 2009
Orlando Business Journal--March 23, 2009
Florida Insurance Commissioner Kevin McCarty threw support behind efforts to stop insurance companies from using credit scores in setting rates for their customers.
McCarty said he applauds a National Association of Insurance Commissioners decision to hold a meeting on the issue. Using credit scores in the underwriting process unfairly discriminates against minorities and low-income people, he said.
The practice is particular hard on people who are struggling to pay other expenses during the recession, he said, since many have been forced to use credit cards to cover expenses that they would normally pay directly.