Michigan's Office of Financial and Insurance Regulation (OFIR) is disapproving auto insurance rate filings that use credit information as a factor in determining premiums as the issue continues to wind its way though the state's court system.
Although Michigan law permits the use of credit scoring, OFIR Commissioner Ken Ross announced in a statement that he has determined premiums developed using insurance credit scoring are unfairly discriminatory and do not meet the requirements of Michigan's Insurance Code.
In making his case, Commissioner Ross pointed to studies conducted by consumer groups U.S. PIRG and the Consumer Federation of America. The reports highlight mistakes in the credit reports of many Americans.
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