• Randy Neugebauer (R-TX):  I want to go back to one of the things that seems to be a common theme, and I do not want to put words in people's mouth, but that the credit scores are used in part of the underwriting process.
  • What is not standardized is some companies put more weight on that credit score than others.
• Michael MCRAITH (NAIC / Director, Illinois Department of Insurance: Absolutely. The one example that I recall, Congressman, is several years ago, there were life insurance companies charging higher premiums to African-American enrollees because their life expectancy was shorter.
  • The country and States determined that was inappropriate.
  • I am not disagreeing with you.
    • I think we want companies to be accurately pricing their products and financially strong.
    • All I am pointing out is that actuarial justification in and of itself is not sufficient.

2010 0512 - GOV (House) - Use of Credit Information Beyond Lending: Issues and Reform Proposals - [PDF-263p, VIDEO-CSPAN]