The Alaska State Supreme Court has reinstated a rule barring insurers from using “frozen” credit scores in renewal decisions, overturning an appellate court decision.
The case, between the state's Department of Commerce, Community and Economic Development and the Progressive Casualty Insurance Company, involved a rule implemented by the insurance division based on state law barring the use of credit scores as a factor in the renewal decisions or underwriting at renewal.
Progressive asked regulators if they could “freeze” an insured's credit score at the initiation of the policy and use that to make underwriting risk group determinations, but the division denied the request. The Alaska State Superior Court overturned the denial on appeal, but Friday's State Supreme Court ruling will reestablish the division's ban.
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