Alice Yao - AYAO Insurance
12700 NE 124th St #9, Kirkland, WA 98034
WAOIC #716776
Dependable Service
Credit Scoring Ban
*Updated on October 15th to reflect the latest ruling.
As insurance professionals, one of the most important things is continuing to stay updated on rules and regulations within the insurance industry.
The Washington Superior Court recently upheld the Washington State Insurance Commissioner's emergency rule to stop all property and casualty insurers in the state of Washington from using credit-based insurance scoring as a factor in rates for personal property for three years.
The rule applies to policies with coverage terms beginning on or after June 20, 2021.
Below is the timeline of events relating to this emergency rule and also reference links for more information.
March 22, 2021
Emergency Rule Banning Credit Scoring
WA State Insurance Commissioner Mike Kreidler issued an emergency rule banning usage of credit scoring relating to insurance premium calculation.
March 22, 2021
April 23, 2021
Court Denies Challenge To The Ruling
A Thurston County Superior Court judge denies the challenge to halt the emergency rule.
May 6th, 2021
Deadline To Submit New Rate Plan
Insurance companies have until end of day on May 6th to file rating plans that comply with the emergency rule.
May 6th, 2021
June 20, 2021
Emergency Rule Takes Effect
Emergency ruling to ban credit scoring usage for insurance will take place starting on June 20, 2021.
October 8th, 2021
Judge Overturns Emergency Order
A Thurston County Superior Court Judge made a ruling to overturn the emergency order, citing that the Insurance Commissioner did not have a "good cause" to file the order as an emergency.
October 8th, 2021
Link References To Timeline
Emergency Ruling Banning Usage of Credit Scoring
Office of the Insurance Commissioner - Credit Scoring Ban
Forbes - Industry Injunction Request Fails
Reminder From Commissioner of May 6th Deadline
Emergency Rule Takes Effect On June 20th
Judge Overturns Emergency Ruling
