Thurston County Superior Court Judge Indu Thomas has issued a permanent stay on Washington Insurance Commissioner Mike Kreidler’s credit scoring ban. That means the practice can continue by Washington insurers until the case winds up back in Thomas’ court later this year.
A suit seeking the stay was filed by the PIA Washington, the American Property Casualty Insurance Association (APCIA), the National Association of Mutual Insurance Companies (NAMIC) and the Independent Insurance Agents and Brokers of Washington (IIABW).
The PIA Washington, and the three groups, worry about how Kreidler’s ban on credit scoring has effected consumers. His original ban in 2021 saw rates rise for over one million Washingtonians and it was especially hard on seniors on fixed incomes.
“The effect of the stay is that credit-based insurance scores will continue to be available for use in Washington state through a decision on the merits and any subsequent appeals,” the PIA Washington and the three groups said in a statement. “We look forward to explaining our legal arguments against the onerous and unnecessary permanent rule that ignores the fundamentals of risk-based pricing and is raising premiums for lower risk Washington consumers.”
Kreidler issued a short statement on the latest setback.
“I’m grateful the parties in this case have all agreed that it’s in everyone’s best interest to get a final decision on the rule as fast as possible,” he said. “This agreed order ensures the decision will be made expeditiously through the Thurston County Superior Court, which is the appropriate venue to consider the important consumer protections in this rule.”
This is the second time the four groups have taken Kreidler to court. His unilateral credit scoring ban was overturned in June of 2021 when a judge said he did not have the authority to just end credit scoring by himself. Undeterred with that outcome, the commissioner then went about banning credit scoring via public hearings.
Kreidler’s push to ban credit scoring has spilled over to neighboring Oregon. A bill to do the same thing was stopped through efforts from the agents of PIA Oregon and other insurance groups.
Source link: KPVI TV
Washington Judge Issues Formal Stay on Credit Scoring Ban
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