Difference between revisions of "McCarty.Credit"
Jump to navigation
Jump to search
(→BattleTable) |
(→In Plain English!) |
||
| Line 69: | Line 69: | ||
==In Plain English!== | ==In Plain English!== | ||
| − | This paper is easy | + | This paper is easy - good bedtime reading. ''(You only have to know the first 11 pages.)'' |
| − | + | :{| class="wikitable" | |
| + | |- | ||
| + | | '''Question''': identify arguments against the use of credit-scoring [Hint: <span style="color: red;">'''FEED'''</span> | ||
| − | + | : <span style="color: red;">'''F'''</span>requency ''(credit score is correlated only with <u>frequency</u>, not with severity of claims)'' | |
| + | : <span style="color: red;">'''E'''</span>rros ''(50% of credit reports have errors)'' | ||
| + | : <span style="color: red;">'''E'''</span>conomic downturns ''(may have a disparate impact on vulnerable populations)'' | ||
| + | : <span style="color: red;">'''D'''</span>discriminatory ''(credit scoring may lead to rates that are unfairly discriminatory)'' | ||
[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> <span style="color: red;">'''You must be <u>logged in</u> or this will not work.'''</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]'''</span> <span style="color: red;">'''You must be <u>logged in</u> or this will not work.'''</span> | ||
Revision as of 18:45, 26 November 2018
Representing the NAIC, McCarty presented his views on the impact of credit-based insurance scoring on the availability and affordability of insurance. This reading is closely related to Kucera.Credit.
Pop Quiz
BattleTable
Based on past exams, the main things you need to know (in rough order of importance) are:
- arguments against use of credit scores (see Kucera.Credit for arguments for use of credit scores)
- disproportionate impact of credit scoring on certain classes of insureds
reference part (a) part (b) part (c) part (d) part (e) (part f) E (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
Full BattleQuiz You must be logged in or this will not work.
In Plain English!
This paper is easy - good bedtime reading. (You only have to know the first 11 pages.)
Question: identify arguments against the use of credit-scoring [Hint: FEED - Frequency (credit score is correlated only with frequency, not with severity of claims)
- Erros (50% of credit reports have errors)
- Economic downturns (may have a disparate impact on vulnerable populations)
- Ddiscriminatory (credit scoring may lead to rates that are unfairly discriminatory)
Full BattleQuiz You must be logged in or this will not work.
BattleCodes
Memorize:
Conceptual:
Calculational:POP QUIZ ANSWERS
