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3 years ago
Thu Jan 20, 2022 1:21 am
Birdman
Primer AuthorCo-Founder
Birdman has been gardening for over 2 years.
Credit based insurance scores (CBIS)
Credit-based insurance scores were introduced by the FICO in the early 1990s. ‘FICO estimates approximately 95% of auto insurers and 85% of homeowners' insurers use credit-based insurance scores in states where it is a legally allowed underwriting or risk classification factor.’ [NAIC](https://content.naic.org/cipr_topics/to ... scores.htm)
Five states limit the use of CBIS:
: [Experian article](https://www.experian.com/blogs/ask-expe ... ce-scores/)
One company that provides the service is LEXIS-NEXIS, another is Verisk. If I recall correctly, Lexus uses Equifax and Verisk uses TransUnion. If your rates have been high and you have improved your credit, you can have your insurer pull a new score and maybe get a lower premium at renewal time.
The algorithms that are used are totally different from credit algorithms. For instance at Lexis, store cards penalize you, especially if they are your oldest card and even more so if it is your oldest card by far. Gas cards hurt you, all retail cards. Credit union accounts improve your score up to 33% of accounts.
You would not believe all the different factors they use. Insurance companies can make exceptions based on life events; however there’s no standards I am aware of to explain that. But it’s worth asking, if you’re being highly penalized.
Missing information can harm you, as can inaccurate information. Hope this is helpful. u/IrritatedAvians
[Lexis](https://risk.lexisnexis.com/insurance/datause)
[Commercial Attract reason codes](https://risk.lexisnexis.com/-/media/fil ... %20pdf.pdf)
[correlation between credit history and accident claim](https://risk.lexisnexis.com/-/media/fil ... %20pdf.pdf)
[FAQs](https://vermontmutual.com/images/pdf/in ... re_FAQ.pdf)
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Score data
EQ8-827; TU8-817; EX8-816
EQ5-751; TI4- 800; EX2-814 - Classic 8 Scorecard CLEAN/THICK/MATURE/NEW-REVOLVER
- Mortgage Scorecard CLEAN/THICK/MATURE/NEW-ACCOUNT
- AoOA AoOIA 49mo AoOMA 0m
- AoORA 540 months
- Date of Last Inquiry and/or New Account Opening March 2nd, 2022