Credit scoring influence on insurance scoring in Michigan

Ok- So it appears I was wrong about Jenny Granholm.

In Michigan, a Circuit Court judge ruled on April 25 that banning the use of credit information as proposed by the Office of Financial and Insurance Services (OFIS) was illegal, invalid and unenforceable because the Office was attempting to rewrite the Insurance Code through administrative rulemaking. The judge said that the evidence shows that policyholders with low credit scores present a higher risk than policyholders with higher scores and that one of the basic principles of insurance was that higher risk policyholders should pay higher rates. The OFIS is appealing the ruling. The lawsuit stemmed from a decision by Michigan Governor Jennifer Granholm and Insurance Commissioner Linda Watters, announced in April 2004, that the state would ban the use of insurance scoring in personal lines insurance as a rating factor and in underwriting. The two officials said eliminating the use of credit would produce lower base rates and make insurance more affordable but, in fact, because more people benefit from the use of insurance scoring than are penalized, most people would have seen a rise in rates. Auto insurance rates are higher than average in Michigan, in part because the state’s auto insurance system provides generous medical care benefits.

And another from Insurance Journal:

Michigan’s Granholm Moves to Ban Insurance Scoring

By Kevin B. O’Reilly
May 17, 2004

When campaigning for her current office, Michigan Gov. Jennifer Granholm made it clear she detested the use of credit in rating and underwriting auto and homeowners insurance policies. Still, that was back in 2002. It was during the campaign. Industry observers thought that, perhaps, her anti-scoring fervor had somehow cooled.

“Evidently we were in error,” said Robert Pierce, CEO of the Michigan Association of Insurance Agents (MAIA).

After a year of negotiations with House legislators, a bill to regulate what are called the worst abuses of the credit-based insurance scoring system in Michigan was introduced in mid-April. Largely based on the National Conference of Insurance Legislators’ (NCOIL) model act on credit with a few wrinkles specific to the Wolverine State’s situation, HB 5803 appeared to be a breakthrough. Staffers from the Office of Financial and Insurance Services (OFIS) were even in on the negotiations.

So it came as somewhat of a surprise when Granholm and OFIS Commissioner Linda A. Watters announced in a televised news conference a week later that not only would they not support the House bill (or its similar Senate version) but they would shortly propose a rule to ban the use of insurance scoring altogether. Maryland bans insurance scoring for homeowners insurance while California’s ban applies only to auto insurance. Every other state allows insurance scoring to some degree or another.

In a statement, the MAIA called the move “abrupt” and Pierce told Insurance Journal he was “surprised and disappointed” by the governor’s announcement.

“We feel that by proposing a rule this is the most effective way to provide base rate reductions to our consumers,” Watters told IJ. “The bottom line is that insurance rates in Michigan are just too high. We have seen since credit scoring began to be used in Michigan in 1996 that base rates have increased for auto insurance between 45 and 90 percent and for homeowners between 86 and 162 percent. So we do know that that’s a factor.”

The National Association of Insurance Commissioners has ranked Michigan’s auto insurance rates 13th highest at $872 annually, compared to the national average of $817. Homeowners insurance rates are 30th highest at $487, compared to the national average of $417.

Watters said OFIS had been pushing for a 10 percent limit on the amount an insured’s rate could be discounted due to credit, but when the department did not get its way the administrative option had to be pursued. She also said the ban would bring base rates down between 10 and 45 percent. Both she and Granholm blamed discounts to insureds with good credit for raising base rates.

Doug Cruce, executive director of the Insurance Institute of Michigan, estimated that 50 to 60 percent of insureds are currently receiving a discount, “and they’ll all receive an increase proportionate to the discount they’re getting.”

Michigan already bans the use of insurance scores to raise an insured’s rates, a common feature of the NCOIL-based laws around the country was inapplicable here. Insurers are only allowed to use insurance scores to offer customers discounted rates. Earlier this year, Watters called on all auto and home insurers to file certain loss data with OFIS for a study on whether the rates being charged were justified by insurers’ losses. The study is scheduled to be issued in late summer, but Granholm and Watters felt comfortable moving forward without the study’s conclusions.

“We felt no hesitation to wait until the findings are in,” Watters said. “This is an opportunity for us to eye reductions for consumers. The rule-making process takes four to six months. The results of the study will be out before process is over. So we’re not pre-empting our study by taking this action.”

Watters and Granholm argued that pushing the ban via the administrative rule-making process instead of moving it through the Republican-led legislature is legitimate because insurance scoring violates the state’s Essential Insurance Act by not applying discounts uniformly to all persons across the state. The pair also argued that the unreliability of credit reports and the lack of uniformity in insurers’ scoring models make the practice illegal.

In either case, my car insurance went up 56 dollars this year.

Another 5 American soldiers dead in Iraq

Call me a libtard or a pinko or whatever you would like to, but it seems like the American people are finally beginning to wise up after having the realities and costs of war battering them over and over. Here we have another 5 soldiers who have died for this war. President Bush is seeing the lowest approval rating of his entire tenure. The latest Gallup polls show that 67% of the American people disapprove with how the Commander-in-Chimp is running this war as well as saying another 63% support a partial or complete withdrawl of our forces from Iraq.

These are indeed dark days we live in.

By Jonathan Finer and Fred Barbash
Washington Post Staff Writers
Tuesday, September 20, 2005; 9:48 AM

BAGHDAD, Sept. 20 — The military announced the deaths Tuesday of five U.S. soldiers in three separate roadside bomb explosions, pushing the number of U.S. fatalities since March 2003 past the 1,900 mark.

Four of the soldiers were assigned to the 2nd Marine Division, II Marine Expeditionary Force in Ramadi, 60 miles west of Baghdad. They were “conducting combat operations” and died in two separate incidents, said the military, declining to provide further details.

A fifth soldier belonged to the 18th Military Police Brigade and was killed 75 miles north of Baghdad when his vehicle was struck by an improvised explosive device, according to an official press release.

According to the Associated Press, the number of U.S combat deaths in Iraq stands at 1,904.

The details.

Katrina brings out flaws with the Bush Administration AND Christianity

Newsweek had an excellent article that pointed out some serious flaws with how this country handles Christianity.

Katrina has reminded us that Christian morality should be about responding to the wretched and loving the unlovable—not about other people’s sex lives.

How much more money is going to be spent censoring pornography vs. committing to a poverty program that isn’t totally horked?

Personally, I’m against spending any federal dollars on rebuilding New Orleans. Here are some reasons why:

1. Spending money on rebuilding only encourages people to build their houses in a flood zone again.

2. The federal government is going to spend about 200 billion, at last count. That is 400,000 dollars for every family in New Orleans. Why so much?

3. We could easily absorb these families into the rest of the cities in the U.S., because the U.S. economy is producing about 200,000 new jobs every month.

4. Another hurricane WILL hit N.O. within the next 20 or 30 years. Maybe it will be as early as 5 years, or perhaps next month…no one knows.

Here is a good editorial about what is being spent by our government, and how some of the recipients are wasting the money:

Reviews of the Nokia 7710

Nokia 7710

By far, the best, most complete review of this very interesting gadget is over at GSMArena. Some of their highlights:


  • large and high resolution display
  • excellent for browsing the Internet
  • quality sound
  • great for playing video
  • quality organizer functions
  • good pictures


  • overall slow system
  • stability problems
  • yellow cast on the display
  • slow searching in the phonebook
  • it is not always possible to use it without the stylus
  • bad ergonomics in some cases

There is a very large review over there, with a ton of pics. So check it out.
Personally, I don’t think I have the money for this thing, so I’m sticking with my PocketMod.

Baby Alice – Monstertruck

Straight from the clubs of Sweden is this delightful song about prostitution and safe sex. I have to admit I laughed my ass off the first time I heard this:

Making me ready for a hard night out
To were the ladies scream and shouts
I got it served and I’m always tight
(You’re always tight, you’re always tight)
Asking you one thing before our night!

Are you protecting your eggs?
’cause I’m gonna be between your legs
Are you protecting your eggs tonight?
I got a Monstertruck
And you are the one I’m gonna ….
I’m your Monstertruck tonight!

The Harbor is the place for me
Where all the ladies starts at three
And there you stand always waiting for me
(I’m waiting for you, I’m waiting for you)
And my only question has to be!

Are you protecting your eggs?
(I am protected)
’cause I’m gonna be between your legs
Are you protecting your eggs tonight?
(I am protected, I am protected)
I got a Monstertruck
(You got a Monstertruck)
And you are the one I’m gonna ….
I’m your Monstertruck tonight!
(You wanna try me? You have to buy me!)

Stick. Who do you think you are, picking me up into your car?!
Paying me with your money
Begging me to call you honey!
I do what you pay me for, no more – no less…
The answer to your question is yes, yes, YEEES!

I am protecting my eggs!
(Are you protected?)
So you can Cum between my legs
You can “drive” me all night long!
(I gonna drive you, I gonna drive you)
I want your Monstertruck
(I got a Monstertruck)
You only need a 100 bucks
With no money you can’t …
(I got the money, I got the money)

Green Day – Wake me up When September Ends Lyrics

Summer has come and passed
The innocent can never last
wake me up when september ends

like my fathers come to pass
seven years has gone so fast
wake me up when september ends

here comes the rain again
falling from the stars
drenched in my pain again
becoming who we are

as my memory rests
but never forgets what I lost
wake me up when september ends

summer has come and passed
the innocent can never last
wake me up when september ends

ring out the bells again
like we did when spring began
wake me up when september ends

here comes the rain again
falling from the stars
drenched in my pain again
becoming who we are

as my memory rests
but never forgets what I lost
wake me up when september ends

Summer has come and passed
The innocent can never last
wake me up when september ends

like my father’s come to pass
twenty years has gone so fast
wake me up when september ends
wake me up when september ends
wake me up when september ends

Scam Alert – TST Solutions,

I have domain,, listed for sale on godaddy auctions. After some communication, it turns out that he just wants me to try his domain selling service or something. I told him to fuck off. Here is the email I got this morning:


I’m interested in your domain name listed for sale.

Can you drop me your desired price?

If I can afford it I’ll reply.

By the way, did you receive offers from other buyers?

I run a software development company. Selling & buying names is not my main business. Just another way to invest money and make additional income.

Please keep our correspondence confidential.

Best regards,

Robin K. Henson

Ph. D. President

TST Solutions

NOTICE – This communication may contain confidential and privileged
information that is for the sole use of the intended recipient. Any
viewing, copying or distribution of, or reliance on this message by
unintended recipients is strictly prohibited. If you have received this
message in error, please notify us immediately by replying to the message
and deleting it from your computer.