A package of equity legislation proposed on Monday, Dec. 14, 2020 by Gov. Jay Inslee includes a bill introduced by Sen. Mona Das (D-Kent) to prohibit auto, homeowner, renter and boat insurers from basing a person’s insurance rate on their credit score.
Senate Bill 5010 – sponsored by Das at the request of the Office of the Insurance Commissioner – would prohibit the insurance industry from using an individual’s credit score to determine what that person’s insurance rate should be.
“I’m thrilled to help champion a powerful policy of equity and justice, and I’m thankful to Commissioner Mike Kreidler for his years-long commitment to this work and to Gov. Inslee for amplifying this legislation,” Das said. “We are in the middle of a pandemic that has upended lives, jobs, and our entire state’s economy. This summer also demonstrated in communities around the country that we need to do a better job addressing racial inequity in our systems. It’s time to take action, and this bill is a step toward progress.”
SB 5010 was pre-filed for introduction on Dec. 10. It will be referred to a committee once the Legislature convenes for the 2021 legislative session Jan. 11.
“This policy is one good tool to help ease a financial burden for all Washingtonians and address the disproportionate impact that credit scoring has on Black communities, Indigenous communities, and other communities of color,” Das added.