Summary: Underwriters Have Tapped Credit Score As Basis In Deciding Whether To Accept Or Reject An Insurance Application. Is It Unfair Or Not?The Recent Wake Of Credit Data Computerization And The Expansion Of The Internet Made It Possible For Financial Businesses To Achieve More Speed, Efficiency And Accuracy In Their Function. In The Insurance Business Arena, Underwriters Have Tapped Into This Credit Resource To Provide Themselves Basis To Decide Whether To Accept Or Reject An Application For Insurance. And Amidst All The Wake Of Developments, Critics And Casualty Alike Are Opposing These New Reforms That Are Taking Over So Fast. In Essence, Insurance Credit Score Is An Adaptation Of A Credit Score Report. Though The Details Considered On Insurance Credit Scores Are Those That Are Directly Helpful For Underwriters To Judge A Certain Application. In Researches That Have Been Made, The Studies Showed That A Majority Those Who Do Poorly In Credit Scores Are The Ones That Most Likely To File An Insurance Claim. So How An Applicant Manages His Or Her Financial Affairs Can Be A Good Indicator For A Commendable Client.What Does Credit Scores Have Something To Do With How Insurance And Premiums Be Awarded? National Association Of Independent Insurers Donald Hanson Statement To The CBS Is The Explanation: Research Indicates That People Who Manage Their Personal Finances Responsibly Tend To Manage Other Important Aspects Of Their Life With That Same Level Of Responsibility And That Would Include Being Responsible Behind The Wheel Of Their Car Or Being Responsible In Maintaining Their Home.There Are Several Disputes Of These Though. Using Insurance Credit Score Have Been Cited By Some Critics As Unfair. Low Financial Opportunities May Make An Average Earning Households Miss A Couple Of Payments Which Can Hurt Their Score. The Last Thing These Household Needs Is A Mounting Insurance Bill. While Those That Can Maintain A Healthy Credit Score Would Have No Problems With Insurance Credit Score These People Type Are Strictly Restricted To The Upper Classes. The Majority Is The Middle-class Households; The Hardest Hit Class Who Are Even Struggling To Maintain An Average Credit.Corrupt And Opportunistic Insurance Companies Maneuvered This New Insurance Policy Deftly To Meet Their Selfish Needs. In Fact, There Have Been Already Countless Of Accounts Wherein Insurance Companies Played This Part To The Extent Of Gratifying Their Coffers On Someone Elses Expense. The Truth About Insurance Credit Score Is That It Has Given Them More Leverage Than They Already Have, As Credit Scores Have Given Banking Companies. There Had Been Accounts Over The Past That Certain Individuals Did Manipulate Insurance To An Extent But The Policy They Exacted Today Is A Tad Bit Unfair To The Majority Of Honest Clients. Still The Question Remain: Is Insurance Credit Score Unfair Or Not?
