Credit-Based Insurance Scores: Are They Fair

Tuesday, October 2, 2007, 2:00 p.m., 2128 Rayburn House Office Building
Oversight and Investigations

WASHINGTON, DC— U.S. Representative Melvin L. Watt (D-NC), Chairman of the Subcommittee on Oversight and Investigations, today announced a hearing to consider the implications of the growing use of credit-based insurance scores for consumers.  Specifically, the hearing will review a Federal Trade Commission (FTC) report to Congress entitled, “Credit-Based Insurance Scores:  Impacts on Consumers of Automobile Insurance” and examine its key findings.  The hearing will also study the efforts underway by the States to regulate the use of credit-based insurance scores.

“The FTC report raises serious concerns about the impact of the growing use of credit-based insurance scores that demonstrate a proxy effect for minorities.  I have, therefore, quickly scheduled a hearing this week to review the report, including discussion of the limitations of the research methodology that was used for the report,” said Congressman Watt.

"The FTC report confirms some of our initial concerns about the fairness of credit-based insurance scoring when it comes to Latinos and African-Americans.  But I am pleased that Oversight Subcommittee Chairman Watt will hold a hearing on the issue and look forward to learning more details about the study,” said Congressman Luis Gutierrez (D-IL).

Witness List & Prepared Testimony:

• The Honorable J. Thomas Rosch, Commissioner, Federal Trade Commission
• The Honorable J. P. Schmidt, Commissioner of Insurance, State of Hawaii
• The Honorable Mike Kreidler, Commissioner of Insurance, State of Washington
• Mr. Birny Birnbaum, Executive Director, Center for Economic Justice
• Mr. Eric Rodriguez, Deputy Vice President, National Council of LaRaza
• Mr. Nathaniel Shapo, Partner, Katten Muchin Rosenman LLP
  
  

Available Member Statements: Chairman Watt, Congresswoman Waters

Printed Hearing: 110-64

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