What criteria must an insurer meet to deny personal insurance based on a person's credit history?

To deny personal insurance based on a person's credit history, an insurer must combine the credit history with other substantial underwriting factors. This criterion ensures that decisions regarding insurance eligibility or premiums are not based solely on credit history, which can be an incomplete reflection of a person's risk profile.

In many states, including Washington, regulations are in place that require insurers to consider multiple factors when assessing risk and determining premiums. This holistic approach recognizes that various aspects of an individual's financial behavior and insurance history contribute to their overall risk. By combining credit history with other substantial factors, such as claims history, income, and other relevant financial metrics, insurers can create a more balanced and equitable assessment process.

This requirement helps protect consumers from potential discrimination or unfair treatment solely based on their credit scores, which may not fully represent their ability to manage insurance responsibilities or reflect their overall risk profile accurately.