FALLACY: With scoring, computers
are making the underwriting decisions.
FACT: Computers don't make underwriting
decisions, people do. While a computer does calculate an Insurance
Bureau Score, the score is only one of server al pieces of information
that underwriters use to help make a decision on new and renewal
policies. Some insurance companies use score to help them decide
when to ask for more information from the application.
FALLACY: A poor score will haunt
FACT: Just the opposite is true.
An Insurance Bureau Score is a snapshot of your insurance risk picture
at a particular point in time. Your score changes as new information
is added to your credit bureau file. Over time, your score changes
gradually as you change the way you handle your credit responsibilities.
Because recent credit information is more predictive than older
information, past credit problems will impact your score less as
time passes. Insurance companies typically request a current score
when you submit a new application so they have the most recent information
FALLACY: Insurance Bureau Scores
are unfair to minorities.
FACT: Insurance Bureau Scores
do not consider ethnic group, religion, gender, marital status,
nationality, age, income or address. Only credit-related information
is included, and its use is governed by the FCRA and Equal Credit
Insurance Bureau Scores have proven to be an accurate
and consistent measure of insurance risk for all people who have
some credit history. In other words, at a given score both non-minority
and minority applicants present an equal level of insurance risk,
or the likelihood of future insurance claims.
FALLACY: Scoring is an invasion
of my privacy.
FACT: Insurance companies have
used consumer credit information to assist in their underwriting
decision since the FCRA was enacted in 1970. An Insurance Bureau
Score is simply a number that provides an objective and consistent
summary of the credit information. In fact, by using scores, some
insurance companies don't need to ask for as much information on
their application forms.
FALLACY: My Insurance Bureau Score
will hurt if I contact server al insurance companies who each access
my credit report.
FACT: Insurance company
requests or "inquiries" are not considered by Insurance
Bureau Scores and will not affect your score.