|Received:||5/20/2008 7:05:56 PM|
|Agency:||Federal Trade Commission|
|Rule:||FACTA Credit-based Insurance Score Study – Homeowners Insurance|
Comments:Use of Credit Scoring for Homeowner's Insurance is a bad idea. The home is the single most expensive asset that an individual has. The people who will be hurt the most are the lower income population and the retired population. There are already too many uses for one's credit score - even if it is only a component toward an insurance company's decision whether to insure a certain parcel of property. There are many abuses in the use of credit scores relative to other aspects of life. Let's not add Homeowner's Insurance to the list of areas open to widespread abuses. No mention is made regarding privacy rights or the protection from the mishandling of personal information - the road toward Identity Theft. The Insurance Companies already have enough methods to gain the information necessary to determine whether to write the Homeowner's policy. Homeowner's Insurance is a very special need - to protect one's most valuable asset: the home. Please do everything necessary to safeguard this prudent financial decision : personal responsibility to safeguard one's own property. That is, unless the FTC wishes to involve the Federal Government into the Homeowner's Insurance business of insuring those homesteads that private industry would exclude because of the fallacy that a low credit score necessarily raises the insurabilty risk beyond that which a prudent Homeowner's Insurance Company would wish to take.