PL - IA 01/01/2013 Rates and Manuals - Western National Insurance ...

What is the process for obtaining an insurance score?New Applications – If you are applying for personal insurance, your agent will gather your personalinformation including credit information. This can be done orally but we prefer to receive your signatureon the application and the notice of information practices (both documents contain the authorization tocollect and disclose personal or privileged information).Renewal – Your insurance score will be reordered every year. Any change in the insurance score factorwill be applied on the next renewal date. In the event of a reduction of the insurance score, tierreassignment will be limited to a maximum of two tiers.How will credit history be used?Western National uses credit information as one of several tools to underwrite an account. Credit historyis not used as the sole reason for declining an application. Other underwriting reasons for declinationsinclude, but are not limited to, poor claim experience, poor property condition/maintenance, ownership ofanimals, unacceptable liability exposures, unacceptable violations/loss history, excessive mileage drivento work/school, previous poor payment history with Western National, etc.Western National will not decline coverage of personal insurance if there is an absence of credit historyor if we are unable to determine your credit history or insurance score provided we have receivedaccurate and complete information.Western National also will not use the following types of credit history to decline coverage, calculate aninsurance score or determine your rate: credit inquiries not initiated by you, inquiries identified on yourcredit report relating to insurance coverage, multiple lender inquiries identified as being from the homemortgage industry or from the automobile industry and made within 30 days of one another, and yourtotal available line of credit (however, we may consider the total amount of outstanding debt in relation tothe total available line of credit.)How will the insurance score be used?After the insurance score is obtained from LexisNexis, our provider of consumer reports, the insurancescore will be translated into the appropriate tier determined by the ten insurance score bands. Thehighest insurance score obtained on the named insured, spouse, parent of a youthful (if resident of thesame household) shall determine the insurance score band, tier and applicable factor. The insurancescore discount will then become a part of the algorithm used to determine the insurance premium.Will my agent/agency see my credit file or insurance score?No. Western National understands the sensitive nature of credit information and thus your score is keptstrictly confidential. Your agency will, however, be able to see the tier your score falls into.How are “no hits” and “no scores” handled?A “no hit” is defined as not being able to find a credit file. If “no hit” is developed, the insurance scorediscount will not apply.For our policyholders in Iowa and South Dakota – If “no hit” is developed, the insured will be placed inthe G2 tier.A “no score” is defined as being able to find a credit file but there is not enough credit history to developa score. If “no score” is developed, the insurance score discount will not apply.For our policyholders in Iowa and South Dakota – If “no score” is developed, the insured will be placed inthe G2 tier.Mutual Underwriting Information – October 2012 Page 26