Both the Property Casualty Insurers of America (PIA) and the American Insurance Association (AIA) hailed a Michigan Supreme Court’s 4-3 decision stating that the Michigan insurance commissioner does not have the authority to arbitrarily ban the use of credit-based information by insurers in pricing and underwriting.  The decision, which arose from the Insurance Institute of Michigan, et al v. Commissioner, Michigan Financial and Insurance Services, Department of Labor and Economic Growth, plays forward in positive ways for insureds, notes David Snyder, vice president and associate general counsel of the AIA.

The 4-3 decision makes invalid the rules against credit scoring as proposed by the Granholm Administration; further, it halts their enforcement permanently.

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