"Many factors are contributing to the crisis, but the use of credit scores to deny coverage raises questions about fairness and equality," said NAR President Cathy Whatley, a Jacksonville, Fla.-based real estate agent.

The insurance industry continues to use credit scoring, she said, even though it acknowledges that there is no research proving a causal relationship between credit history and the likelihood that someone will file an insurance claim.

Mike Schmelzer, a New York City-based realtor who heads NAR's Insurance Task Force, added that it is difficult to understand the logic behind the notion that someone who missed a credit card payment at age 22 is more likely to file a claim at age 32.

He said he does not believe it is appropriate for insurance companies to use credit scoring as an underwriting tool.

Mr. Schmelzer said that his task force has discussed the issue with insurance companies and is now evaluating its options.

He said he hopes the task force will have recommendations ready shortly.

In addition to credit scoring, Mr. Schmelzer criticized the cyclical nature of the industry.

He said that in his conversations with insurance industry representatives, the industry justifies large rate increases by citing the insurance cycle.

There was a soft market in the mid-1990s, Mr. Schmelzer quoted industry representatives as saying, and now there is a hard market.

The insurance representatives, he said, insist that the insurance cycle is prevalent in the history of the industry.

That may be so, Mr. Schmelzer said, but that doesn't work well for consumers, who cannot absorb the rate increases.

The insurance industry, Mr. Schmelzer added, has legitimate issues, but it must work with the communities it serves.

The industry must develop strategies that do not have such a negative impact.

Ms. Whatley noted that homeowners' insurance rates increased some eight percent last year and are expected to increase about nine percent in 2003.

She acknowledged that home values have also increased over the same time period, although the degree of increase depends on the location.

However, Ms. Whatley declined to link the increase in insurance premiums to the increase in home values.

This is not necessarily an "apples to apples" comparison, she said.

NAR also questioned the Comprehensive Loss Underwriting Exchange database that provides claims history information to insurance companies.

Ms. Whatley said that the use of this database is creating a fear among consumers of filing claims. The belief is that once that consumer files a claim, he or she might find it very difficult to get insurance in the future.

Mr. Schmelzer added that the database stigmatizes some homes. Once a claim is filed on a property, he said, it may be difficult for prospective purchasers of that property to acquire insurance.

Some insurance companies, Ms. Whatley said, are using the C.L.U.E. database to deny coverage on individuals and properties that have even one claim.