(B)Private Passenger Automobile Insurers in Maryland: Use of Credit Scoring Models

BULLETIN 02- 23b To: «Company_Name» Re: Private Passenger Automobile Insurers in Maryland: Use of Credit Scoring Models Date: November 20, 2002 With respect to policies and contracts issued, delivered, or renewed on or after October 1, 2002, Maryland law restricts the use of credit history in the rating of private passenger automobile insurance policies. The restrictions are codified in § 27-501 of the Insurance Article. To maintain an accurate record of the use of credit history by private passenger automobile insurers, and to ensure compliance with Maryland law, each company is required to complete and submit the attached form so that it is received by the Maryland Insurance Administration no later than December 2, 2002. Questions regarding this Bulletin should be directed to Fred Santiago at (410) 468-2317 or by E-mail at fsantiago@mdinsurance.state.md.us Robert J. Becker Robert J. Becker Associate Commissioner PRIVATE PASSENGER AUTOMOBILE INSURANCE POLICIES: USE OF CREDIT HISTORY I,_______________________________________ a duly authorized officer of ____specific insurer name (NAIC mail merge)__, do hereby verify that the following information is correct and accurate. ( ) specific insurer name – NAIC mail merge) does not use credit history in the rating of private passenger automobile policies. ( ) (specific insurer name – NAIC mail merge) uses the following credit scoring model(s) in rating private passenger automobile policies and began using those models effective ____________ on all policies and contracts issued, delivered or renewed with effective dates of _____________ or later. Check all that apply. Note: If different effective dates apply to different programs, please indicate each program and the effective date of each: ____________________________________ ______________________________________________________________________ ______. Fair Isaac Credit Based Insurance Score Models Fair, Isaac / Equifax InScore ( ) a. non-standard auto InScore 3.0 MD NS 0702 ( ) b. standard auto InScore 3.0 MD SA 0702 ( ) c. preferred auto InScore 3.0 MD PA 0702 ( ) d. other ________________________ Experian / Fair, Isaac Insurance Score ( ) a. non-standard auto EFIIS 2.0 MD NS 0602 ( ) b. standard auto at minimum limits EFIIS 2.0 MD SM 0602 ( ) c. standard auto greater than minimum limits EFIIS 2.0 MD SG 0602 ( ) d. preferred auto at minimum limits EFIIS 2.0 MD PM 0602 ( ) e. preferred auto greater than minimum limits EFIIS 2.0 MD PG 0602 ( ) f. other ______________________ Fair, Isaac / Trans Union Assist ( ) a. non-standard auto ASSIST 2.0 MD NS 0502 ( ) b. standard auto at minimum limits ASSIST 2.0 MD SM 0502 ( ) c. standard auto greater than minimum limits ASSIST 2.0 MD SG 0502 ( ) d. preferred auto at minimum limits ASSIST 2.0 MD PM 0502 ( ) e. preferred auto greater than minimum limits ASSIST 2.0 MD PG 0502 ( ) f. other ________________________ ChoicePoint Credit Based Insurance Score Models ( ) a. Attract MD Std. Auto ( ) b. Attract MD Non-Std. Auto ( ) c. other ______________________ Propriety Credit Based Insurance Score Models ( ) a. __________________________________________________________________ ( ) b. __________________________________________________________________ I understand that the Maryland Insurance Administration will rely upon the information contained in this form. If it is determined that the information contained in this form is false or incorrect, the insurer may be subject to administrative action under Section 4- 113 of the Insurance Article, including appropriate penalties. _____________________________ __________________ Signature of Authorized Officer Date ____________________________ Title Attention: The completed form must be returned to the Maryland Insurance Administration and addressed in the following format: Associate Commissioner Robert J. Becker PPAIP – Use of Credit History Maryland Insurance Administration 525 St. Paul Place Baltimore, MD 21202-2272 Facsimile (410) 468-2306 IMPORTANT NOTICE A new verification form must be completed and submitted to the Maryland Insurance Administration each time scoring models are changed or applied to different programs.