WSR 01-22-009




[ Insurance Commissioner No. R 2001-11 -- Filed October 26, 2001, 11:17 a.m. ]

     Subject of Possible Rule Making: Unfair practices regarding use of credit information in insurance.

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 48.02.060, 48.18.100, 48.18.120, 48.18.290, 48.18.2901, 48.18.291, 48.18.292, 48.18.480, 48.18.540, 48.19.020, 48.19.030, 48.19.080, 48.19.370, 48.30.010, 48.30.300, 48.30.320, 49.60.010, 49.60.030, 49.60.178, and 49.60.220.

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The commissioner will consider rules regarding the use of credit scores by insurers. Among the areas that the commissioner will review are insurer's use of credit information in rating and underwriting and the disclosure of such use to insureds and applicants for insurance.

     Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The Federal Trade Commission (FTC) enforces the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq. The Office of Attorney General (AG) enforces chapter 19.182 RCW, the Washington State Fair Credit Reporting Act. The commissioner seeks to establish criteria that apply to insurers regarding the use of credit information that reflect the unique nature of the business of insurance. Staff from the OIC will inform representatives of the FTC and AG of any proposal.

     Process for Developing New Rule:      Agency study; and to gather information from interested parties around the state, Commissioner Kreidler is holding a series of public hearings: October 25, 2001, at 6:30 p.m. - 8:30 p.m., Spokane West Coast Ridpath, 515 West Sprague Avenue; on October 29, 2001, at 6:30 p.m. - 8:30 p.m., Yakima Oxford Suites, 1701 East Yakima Avenue; on October 30, 2001, at 6:30 p.m. - 8:30 p.m., Vancouver Red Lion at the Quay, 100 Columbia Street; and on November 1, 2001, at 6:30 p.m. - 8:30 p.m., Seattle Best Western Executive Inn, 200 Taylor Avenue North.

     Interested parties have been encouraged to attend these hearings. Written comments will be accepted until December 14, 2001. Submit them to Kacy Scott, P.O. Box 40255, Olympia, WA 98504-0255, fax (360) 664-2782, e-mail

     Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Kacy Scott, P.O. Box 40255, Olympia, WA 98504-0255, fax (360) 664-2782, e-mail

October 26, 2001

Mike Kreidler

Insurance Commissioner

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