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Use of Credit History and Insurance Score

An Insurer Must Inform You if They Intend to Use Your Credit Information

An insurer must notify you in writing, either on the application for insurance or at the time the insurance application is taken, if they intend to obtain and use your credit information in underwriting or rating a personal insurance policy. The required notice may be given in the same medium as the application for insurance.

An Insurer Taking Adverse Action Based on Credit Info Must Provide Basis for that Action

Adverse action includes cancellation, denial, or failure to renew personal insurance, charging a higher insurance premium for personal insurance than would have been offered if credit history or an insurance score had been more favorable, or any reduction or unfavorable change in terms of coverage or amount of insurance due to credit history or insurance score.

If an insurer takes adverse action against you, based in whole or in part on your credit history or insurance score, the insurer must provide you with the opportunity to request reconsideration of the adverse action and provide you with written notice that states the significant factors of the credit history or insurance score that resulted in the adverse action, in a manner that allows you to identify the basis for the adverse action. 

An Insurer May Not Use Credit Information at Renewal

An insurance company may only use your credit history or insurance score to rate your policy at the inception of the policy. They may not use your credit history or insurance score at renewal to calculate your rate, unless you waive this prohibition at each renewal. 

Credit Information an Insurer Cannot Consider

An insurer may not cancel, deny, underwrite, or rate personal insurance coverage based in whole or in part on a variety of factors set forth in AS 21.36.460 including not having a credit history, being adversely affected by a joint account owner, or having a credit history or insurance score based on collection accounts identified with a medical history code.

See AS 21.36.460