Insurance rates based on credit history draw scrutiny from lawmakers in some states

state lawmakers in iowa, new york, oklahoma, and pennsylvania have pending bills to ban insurers from using credit history to set home and auto premiums. the practice, called credit-based insurance scoring, measures how likely someone is to file a claim — lower score means higher premium, even with a perfect driving record. only california, hawaii, and massachusetts currently ban it for auto insurance. california, massachusetts, and maryland ban it for homeowners. a 2007 ftc study found 59% of consumers would see a premium decrease if scores were removed, and 41% would see an increase. insurers argue the tool helps keep rates accurate. the apci's bob passmore said eliminating it would result in "rates that are less fair and accurate for all." but consumer advocates point to the numbers: homeowners with low scores pay 24% more for identical coverage, per nber research. drivers with poor credit pay 69% more on average than those with good credit — sometimes more than a recent dui would cost.