Credit Report Use by Missouri Homeowners

Top 10 homeowners insurers,
by volume, and their use of credit
(as of September 2009)
Name of company Does it use credit? If so, how is it used?
State Farm (NAIC No. 25143) Yes State Farm does not use "credit scoring"; it uses a combination of prior claim information and credit characteristics to calculate a homeowners' insurance risk score. This score is used, along with other factors, to help determine if a new applicant is eligible and the policy premium. Currently, State Farm uses consumer credit information to underwrite and rate a new homeowners' policy; we do not obtain new consumer credit information for renewing policies.
American Family Mutual Insurance Co. (NAIC No. 19275) Yes Credit scoring is used as part of the rating process to help determine the price customers pay for their insurance coverage.
Shelter Mutual Insurance Co. (NAIC No. 23388) Yes Shelter Insurance has six price tiers within its Homeowner rate plan. A consumer's CPAttract score is one factor used to determine the tier to which the consumer will be assigned.
Mid-Century Insurance Co. (Farmers.NAIC No. 21687) Yes Farmers uses a proprietary model to create a risk assessment score to provide our customers a discount on their insurance premium. The amount of discount varies depending on the customer's risk assessment score.
Auto Club Family Insurance Co. aka AAA (NAIC No. 27235) Yes The Auto Club Family Insurance Company uses a financial responsibility score as one of the factors used to rate an insurance risk. This could result in a discount or a surcharge.
SAFECO (NAIC No. 24740) Yes Safeco Insurance Company of America considers a number of insurance risk factors including credit scores to determine the tier placement for customers.
Allstate Indemnity Company (NAIC 17230) Yes Allstate Property and Casualty Insurance Company uses an insurance scoring model that assigns a three-digit score to each policy based on credit report information. Each policy is then assigned to one of thirty rating groups based on this score. Each rating group receives a different factor. No consumers are rejected solely based on credit history. Consumers may be rejected partly based on credit history.
Farm Bureau Town & Country Insurance Co. (NAIC No. 26859) Yes Farm Bureau Town & Country Insurance Company of Missouri currently uses insurance scores as a rating factor in the determination of premium and insurance scores are used in conjunction with other criteria as qualifications for certain programs.
Fire Insurance Exchange (NAIC No. 21660) Yes Farmers uses a proprietary model to create a risk assessment score to provide our customers a discount on their insurance premium. The amount of discount varies depending on the customer's risk assessment score.
Standard Fire Insurance Company (NAIC No. 19070) Yes Company does not write new business

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