Difference between revisions of "McCarty.Credit"
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[https://www.battleacts6us.ca/vanillaforum6us/categories/mccarty-credit<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>] | [https://www.battleacts6us.ca/vanillaforum6us/categories/mccarty-credit<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>] | ||
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| + | <span style="display: inline-block; background-color: blue; color: white; font-weight: bold; text-align: center; line-height: 50px; width: 50px; height: 50px; border-radius: 50%;">VIDEO</span> → | ||
| + | [https://battleacts6us.ca/video/300_Credit_Scores_McCarty_(v01).mp4 <span style="color: black; font-size: 12px; background-color: aqua; border: solid; border-width: 2px; border-radius: 10px; border-color: aqua; padding: 5px 10px 5px 10px; margin-top: 100px;">'''(4:00) → Credit Scores 2 - General Overview'''</span>] | ||
| + | ([[Videos |Click here for all currently available videos.]]) | ||
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| − | [https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=McCarty&suffix=Credit§ion=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=all<span style="font-size: 20px; background-color: lightgreen; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''Full BattleQuiz] | + | [https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=McCarty&suffix=Credit§ion=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=all<span style="font-size: 20px; background-color: lightgreen; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''Full BattleQuiz]'''</span> |
[https://www.battleacts6us.ca/vanillaforum6us/categories/mccarty-credit<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>] | [https://www.battleacts6us.ca/vanillaforum6us/categories/mccarty-credit<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>] | ||
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:: <span style="color: red;">'''D'''</span>iscriminatory ''(credit scoring may lead to rates that are unfairly discriminatory - see below for details)'' | :: <span style="color: red;">'''D'''</span>iscriminatory ''(credit scoring may lead to rates that are unfairly discriminatory - see below for details)'' | ||
| − | : [https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=McCarty&suffix=Credit§ion=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=1<span style="font-size: 20px; background-color: aqua; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''mini BattleQuiz 1] | + | : [https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=McCarty&suffix=Credit§ion=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=1<span style="font-size: 20px; background-color: aqua; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''mini BattleQuiz 1]'''</span> |
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:: '''moral/religious beliefs''': certain belief systems may discourage use of credit ''(you need to use credit to get a good credit score)'' | :: '''moral/religious beliefs''': certain belief systems may discourage use of credit ''(you need to use credit to get a good credit score)'' | ||
| − | : [https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=McCarty&suffix=Credit§ion=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=2<span style="font-size: 20px; background-color: aqua; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''mini BattleQuiz 2] | + | : [https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=McCarty&suffix=Credit§ion=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=2<span style="font-size: 20px; background-color: aqua; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''mini BattleQuiz 2]'''</span> |
There are a few <u>miscellaneous</u> items from old exams that are covered in the mini BattleQuiz. Make sure you look at the following problem because it ties together concepts from a few different readings: ''(It's also included in the mini BattleQuiz)'' | There are a few <u>miscellaneous</u> items from old exams that are covered in the mini BattleQuiz. Make sure you look at the following problem because it ties together concepts from a few different readings: ''(It's also included in the mini BattleQuiz)'' | ||
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: [https://www.battleacts6us.ca/pdf/Exam_(2014_2-Fall)/(2014_2-Fall)_(02).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style="color: red;">'''(2014.Fall #2)'''</span> | : [https://www.battleacts6us.ca/pdf/Exam_(2014_2-Fall)/(2014_2-Fall)_(02).pdf <span style='font-size: 12px; background-color: yellow; border: solid; border-width: 1px; border-radius: 5px; padding: 2px 5px 2px 5px; margin: 5px;'>E</span>] <span style="color: red;">'''(2014.Fall #2)'''</span> | ||
| − | : [https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=McCarty&suffix=Credit§ion=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=3<span style="font-size: 20px; background-color: aqua; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''mini BattleQuiz 3] | + | : [https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=McCarty&suffix=Credit§ion=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=3<span style="font-size: 20px; background-color: aqua; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''mini BattleQuiz 3]'''</span> |
| − | : [https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=McCarty&suffix=Credit§ion=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=all<span style="font-size: 20px; background-color: lightgreen; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''Full BattleQuiz] | + | : [https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=McCarty&suffix=Credit§ion=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=all<span style="font-size: 20px; background-color: lightgreen; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''Full BattleQuiz]'''</span> |
==POP QUIZ ANSWERS== | ==POP QUIZ ANSWERS== | ||
Latest revision as of 18:58, 18 May 2025
Reading: “Testimony of Kevin M. McCarty, Florida Insurance Commissioner, Florida Office of Insurance Regulation and Representing the National Association of Insurance Commissioners, Regarding: ‘The Impact of Credit-Based Insurance Scoring on the Availability and Affordability of Insurance,’ May 21, 2008,” Subcommittee on Oversight and Investigations of the House Committee on Financial Services, excluding Appendices 1 and 2.
Author: McCarty, K.M.
VIDEO → (4:00) → Credit Scores 2 - General Overview (Click here for all currently available videos.)
BA Quick-Summary: Credit-Based Insurance Scores
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Pop Quiz
BattleTable
Based on past exams, the main things you need to know (in rough order of importance) are:
- disparate impact of credit scoring on certain classes of insureds
- arguments against use of credit scores (see Kucera.Credit for arguments for use of credit scores)
reference part (a) part (b) part (c) part (d) part (e) (part f) E (2018.Fall #3) Porter.2-Devlpt Porter.2-Devlpt arguments against
- credit scoresE (2017.Fall #1) see Kucera.Credit arguments against
- credit scoressee Kucera.Credit E (2016.Spring #1) disparate impact:
- gendercredit score vs frequency
- explainE (2015.Fall #1) disparate impact:
- agedisparate impact:
- other than agemetrics / drivers:
- underlying credit scoresE (2014.Fall #2) definition:
- cost-based ratesequitable rates:
- 2 conditionstexting
- is it equitableBloom's Taxonomy:
- financial stabilitysee NAIC.IRIS Bloom's Taxonomy:
- proxy variablesE (2014.Spring #5) see Kucera.Credit arguments against
- credit scoressee Kucera.Credit
In Plain English!
This paper is easy - good bedtime reading. (You only have to know the first 11 pages.) It overlaps with Kucera.Credit but focuses more on potential problems with using credit-scoring in ratemaking.
Question: identify arguments against the use of credit-scoring [Hint: FEED]
- Frequency (credit score is correlated only with frequency, not with severity of claims)
- Errors (50% of credit reports have errors, sometimes due to identity theft)
- Economic downturns (downturns in economy may have a disparate credit impact on vulnerable populations)
- Discriminatory (credit scoring may lead to rates that are unfairly discriminatory - see below for details)
Question: identify examples where credit scoring can be unfairly discriminatory
- age: young people don't have a long credit history, elderly people use credit less often (both may result in a lower credit score)
- poor families: may use cash versus credit (you need to use credit to get a good credit score)
- recent immigrants: may not have access to credit (you need to use credit to get a good credit score)
- moral/religious beliefs: certain belief systems may discourage use of credit (you need to use credit to get a good credit score)
There are a few miscellaneous items from old exams that are covered in the mini BattleQuiz. Make sure you look at the following problem because it ties together concepts from a few different readings: (It's also included in the mini BattleQuiz)
- E (2014.Fall #2)
