Judge says OFIR Commissioner can’t enforce Insurance Code to prevent use of insurance credit scoring

FOR IMMEDIATE RELEASE 
April 10, 2009
Contact: Jason Moon  517-335-1700

LANSING – Today in Barry County Circuit, Judge James Fisher issued an injunction designed to prevent Office of Financial and Insurance Regulation (OFIR) from challenging insurance companies’ rate filings that use credit scoring in determining their premiums.

In 2005, OFIR promulgated administrative rules banning the use of credit scoring. The insurance industry challenged the rules and OFIR has been prohibited from enforcing them while the issue has worked its way through the legal system over the past four years. Both parties have pending applications for leave to appeal in the Michigan Supreme Court. Today’s decision expanded the 2005 injunction by preventing OFIR from challenging insurance credit scoring by enforcing the insurance code on a case by case basis.

“Michigan consumers lost big today—but the fight isn’t over yet,” OFIR Commissioner Ken Ross said. “In spite of this ruling, I intend to press our case on appeal and continue to use every administrative tool at my disposal to ensure that each rate filing fully complies with Michigan law.”  

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