Jul 9, 2010
Insurance companies keep their undefeated streak alive in MI Supreme Court
The rightwing Michigan Supreme Court struck a blow for justice for the downtrodden insurance companies and their record profits against the powerful poor and middle class consumers on Thursday when it ruled on a split 4-3 vote that insurers can continue to consider customers' credit scores when setting rates for auto and homeowners insurance.
In Insurance Institute of Michigan vs. Insurance Commissioner, the Republican majority on the court held that then-Office of Financial and Insurance Services Commissioner Linda Watters exceeded her authority under the insurance code to ban credit scoring through rules she issued in 2004. The “Gang of Four” helped insurance companies keep their undefeated streak alive, and insurance companies have not lost a case in the Michigan Supreme Court in 12 years.
There is no better reason to unseat Justice “Sleepy” Bob Young this November so people can get justice. It’s amazing that Young didn’t recluse himself from the case. He was the head attorney for AAA insurance for many years.
“This is a discriminatory decision by Bob Young and his Republican cronies on the Michigan Supreme Court,” said Mark Brewer, Chair of the Michigan Democratic Party. “This decision will increase premiums for drivers and drive up the cost of auto insurance coverage. Once again, Young and Republicans on the Court side with their campaign donors - the insurance companies - over Michigan consumers.”
I have no idea how your credit score, as well as your education level, zip code and even job title, determines what kind of driver you will be. Your rate should be based on your driving record and the value of your car.
The Republican’s had to twist themselves into a pretzel to please their moneyed donors to justify this discriminatory decision.
According to subscription only Gogwer, Justice Maura Corrigan, writing for the majority that included Stephen Markman, Elizabeth Weaver and Young, said “offering a discount for a good credit score is no different than one for safety devices in a vehicle.”
"Discounts for anti-lock brakes are offered because they reduce the risk of loss, and discounts for high insurance scores are offered because they reduce the risk of loss," she wrote. "The more insureds there are with anti-lock brakes, the lower the risk of overall loss. Likewise, the more insureds there are with high insurance scores, the lower the risk of overall loss."
Say what? A high credit score is the same as anti-lock breaks? That will be good to know when someone with a high credit score is speeding through a residential area and slams on the breaks to avoid hitting a kid who ran into the street.
Once again, the Republican majority on the court stiffed the consumers in favor of their insurance company masters.