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Subject:Re: Insurance and credit checks
From:Mark Dorm
Date:Thu, 13 Feb 2003 15:44:54 -0800
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<P>So if you go bankrupt you also go uninsured? Or if you don't/can't pay old school loans you'll be doing a lot of walking. And the trick is learning how to recreate a better FICO, or whatever it is that they use, when you get hit sideways in life, you fault or not. </P>
<P>So what are these tricks? I know its more than just paying back an old loan (in fact I don't think that would be the best way to go about it.... )<BR><BR></P></DIV>
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<DIV></DIV>&gt;
<DIV></DIV>&gt;The agent does not get your credit history when they request this score.
<DIV></DIV>&gt;They get only a letter or number grade. They then plug this grade into the
<DIV></DIV>&gt;insurance rating program to produce a final premium. All of the companies
<DIV></DIV>&gt;that we represent use this score to give you lower premium as well as a
<DIV></DIV>&gt;higher one. The reason that most insurance agents don't like this system is
<DIV></DIV>&gt;because of the public misperception. My staff spends far too much time
<DIV></DIV>&gt;having to respond to confused clients who rightfully ask "what does my
<DIV></DIV>&gt;credit rating have to do with auto insurance" . Worse is when the score
<DIV></DIV>&gt;comes back with a poor result; something's going on in the credit history
<DIV></DIV>&gt;that our client doen't know about. We are forced into discussing credit
<DIV></DIV>&gt;history and trying to convince them that we have no idea what's causing the
<DIV></DIV>&gt;problem and that they'll have to contact the credit rating bureau to find
<DIV></DIV>&gt;out.
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<DIV></DIV>&gt;Though it's a useful underwriting tool to evaluate a potential insured, it's
<DIV></DIV>&gt;doing some public relations damage to an industry that's damaged already. I
<DIV></DIV>&gt;don't like insurance scoring either.
<DIV></DIV>&gt;
<DIV></DIV>&gt;Gary
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