Expedited Rule Regarding Credit Scoring

In February 2022, Washington Insurance Commissioner Mike Kriedler issued a ban on the use of credit scoring in developing insurance premiums for homeowners, tenants, and personal auto policies. The move was controversial, and insurers claimed that the move would negatively affect certain insureds, and in particular senior citizens on fixed incomes. The three-year period was to run for three years from the day the President’s declaration of national emergency regarding COVID-19 terminates, or until three years after the Governor’s declaration of a state of emergency expires, whichever is later. Trade associations filed suit and the commissioner stayed the implementation of the rule pending the outcome of the litigation. In August, the Thurston County Superior Court invalidated the rule. In order to effectuate the Court’s ruling and to align regulatory language with the Court’s ruling, this expedited rule has been issued. The order repeals section (4) of WAC 284-24A-050 that prohibited the use of credit scoring in personal lines rating. A copy of the expedited rule may be found here.