McCarty.Credit

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.

  Forum

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 scores	see Kucera.Credit
E (2016.Spring #1)	disparate impact: - gender	credit score vs frequency - explain
E (2015.Fall #1)	disparate impact: - age	disparate impact: - other than age	metrics / drivers: - underlying credit scores
E (2014.Fall #2)	definition: - cost-based rates	equitable rates: - 2 conditions	texting - is it equitable	Bloom's Taxonomy: - financial stability	see NAIC.IRIS	Bloom's Taxonomy: - proxy variables
E (2014.Spring #5)	see Kucera.Credit	arguments against - credit scores	see Kucera.Credit

Full BattleQuiz You must be logged in or this will not work.

  Forum

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: