Frequently Asked Questions for
Rating
Please review the Frequently Asked Questions already submitted and answered for
this division. If you require further assistance, you may elect to submit a new
question to this division staff.
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Begin FAQs
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Where can I find rating information on insurance companies?
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The Department of Insurance does not rate insurance companies. Ratings are done by independent companies, such as A.M. Best. You can find ratings at www.ambest.com, which will give you their rating, as well as a definition of their ratings.
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How do companies use credit reports to decide your insurance rate in Louisiana?
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Many insurance companies are using credit histories to generate insurance scores. According to the insurance industry credit is a reasonable predictor of losses. Currently, Louisiana laws do not prohibit the use of credit scores in insurance. However, the Louisiana Insurance Rating Commission does not allow credit scoring as the sole criteria for underwriting.
The Department of Insurance is aware of the use of credit scoring and we are studying the issue before developing a position. On May 1, 2002, Acting Commissioner Wooley held a public meeting with testimony from the insurance industry, credit scoring industry and consumer advocates. He requested staff to continue gathering information, with the hope of developing a well-informed position on the use of credit scoring in determining insurance rates.
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