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.

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BattleTable

Based on past exams, the main things you need to know (in rough order of importance) are:

reference	part (a)	part (b)	part (c)	part (d)	part (e)	(part f)
E (2017.Fall #1)	see Kucera.Credit	credit scores: - arguments against	see Kucera.Credit
E (2016.Spring #1)	pros/cons for using CBIS	ex and pros/cons
E (2015.Fall #1)	how are age groups impacted	other groups being impacted	how can a metric drive loss diff
E (2014.Fall #2)	Kucera-cost based cond	when is ins equitable	ex-is it equitable	Bloom's Taxonomy: - insurer financial stability	see NAIC.IRIS	Bloom's Taxonomy: - proxy variables
E (2014.Spring #5)	see Kucera.Credit	credit scores: - arguments against	see Kucera.Credit

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In Plain English!

This paper is easy to read. If you have time, glance it over as you are only responsible for the first 11 pages.

Basically, McCarthy is concerned that use of credit-based insurance scores disparately impacts certain classes of people thus has a discriminatory effect. He argues that even if a tool may show mathematical correlations with insurance claims, this does not necessarily make it fair and a valid criterion for insurance purposes.

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BattleCodes

Memorize:

Conceptual:

Calculational: