Michigan Court Overturns Ban on Credit Scoring

In a rare victory for insurance companies in Michigan (which is not considered an insurance-friendly state), a Michigan judge overturned an administrative action by Ken Ross (the state's insurance commissioner) that effectively banned the use of credit data to price auto or homeowners insurance policies.

Of course, insurance companies just know it won't be easy to keep their hard-won gains. Mr. Ross is not a friend of the insurance industry, and will continue to fight the ruling, saying

"Michigan consumers lost big today— but the fight isn't over yet," Ross said. "In spite of this ruling, I intend to press our case on appeal and continue to use every administrative tool at my disposal to ensure that each rate filing fully complies with Michigan law."

Personal lines insurance companies have come under a lot of pressure in this down-on-its-luck state, where the government is looking for every avenue to either a) balance the budget or b) keep costs low for its beleaguered residents. Since beating up insurance companies won't hurt a politician's career, they make easy targets. Too bad they keep fighting back...