Community Chat

[DiAnne]

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@Lipstickdiva wrote:

If I sat down and added up all the money I've paid in insurance premiums on our vehicles, motorcycle, boat and houses, I'd probably make myself sick. 

Insurance has got to be one of the biggest rip-offs going.  You pay them premium after premium, year after year but many times, as soon as you make a claim, they drop you.

Even calling an insurance company about a potential claim is recorded and you could have a problem.  But it's a necessary evil.

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I was talking about that recently to a friend.  We have paid car insurance, homeowners, boat insurance and a balloon policy because we own a portion of lake front property and I have never put in a claim.  It does add up to big bucks in a lifetime. 

[Lucky Charm]

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@mstyrion 1 wrote:

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@Mothertrucker wrote:

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@Lucky Charm wrote:

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@AngusandBuddhasMom wrote:

For the past 20 plus years company's have used credit reports for hiring prospective candidates. 

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True.

I always thought that they should also pull driving records of those in the auto insurance business.

I knew a handful in underwriting, actuarial, and compliance that had dui's.

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Who is "they"?  I know in my industry, I have to be licensed, and could not be if I had a DUI....

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Good question Mothertrucker.

I was in the auto insurance business for many years and a DUI could get you fired or demoted.  Not to mention, you had to be able to drive to do part of the job.

Lucky Charm,

Are you saying that those employed in the auto insurance business somehow get a pass on having background checks or regularly scheduled driving records checks?

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I worked for a major insurer in the 80's into the 90's, who didn't require underwriters or customer service reps to be licenced insurance agents.  The rules did change eventually, but those employees could still continue to work their usual jobs handling (and canceling) insured's policies until they did pass the exam and get licenced.

Also, they did not pull MVRs on any employees at that time.  A (work) friend of mine had a DUI and was a head underwriter and then went on to be an executive in the compliance dept.

I'm glad things have changed.

[mstyrion 1]

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@Lucky Charm wrote:

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@mstyrion 1 wrote:

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@Mothertrucker wrote:

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@Lucky Charm wrote:

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@AngusandBuddhasMom wrote:

For the past 20 plus years company's have used credit reports for hiring prospective candidates. 

---

True.

I always thought that they should also pull driving records of those in the auto insurance business.

I knew a handful in underwriting, actuarial, and compliance that had dui's.

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Who is "they"?  I know in my industry, I have to be licensed, and could not be if I had a DUI....

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________________________________________________________

Good question Mothertrucker.

I was in the auto insurance business for many years and a DUI could get you fired or demoted.  Not to mention, you had to be able to drive to do part of the job.

Lucky Charm,

Are you saying that those employed in the auto insurance business somehow get a pass on having background checks or regularly scheduled driving records checks?

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I worked for a major insurer in the 80's into the 90's, who didn't require underwriters or customer service reps to be licenced insurance agents.  The rules did change eventually, but those employees could still continue to work their usual jobs handling (and canceling) insured's policies until they did pass the exam and get licenced.

Also, they did not pull MVRs on any employees at that time.  A (work) friend of mine had a DUI and was a head underwriter and then went on to be an executive in the compliance dept.

I'm glad things have changed.

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I don't know why an Underwriter would have to be licensed as an insurance agent. Insurance agents sell policies.  Underwriters don't.  Maybe you meant some other licensing?

Many companies grandfather all employees under one license if the state allows it. Every company I ever worked for (since the mid '70's) pulled MVRs for prospective employees because many use company cars.  

Quite honestly I don't think one mistake as in a DUI should bar someone from ever becoming a success in their work. That's a bit over the top for punishment IMO.

[esmeraldagooch]

My husbands employer will let you go for a Dui even if you are not at work. ( expected to take people out for dinner and drinks) Point system for driving infractions even if not driving fleet car.

[Kalli]

If I got a dui, I'd lose my job.  I have a feeling one drink might even put me at the borderline of the limit so it's just not worth it to take chances.

[Irshgrl31201]

http://www.onlineautoinsurance.com/learn/why-car-insurance-companies-use-credit/How Auto Insurance Companies Use Credit Scores

Depending on the state, when a motorist applies for automobile coverage they will have their credit history checked by the insurer which is used to calculate "insurance or credit scores" which are then analyzed to determine the likelihood of a potential policyholder filing a claim; carriers believe that the financial history of motorists show a direct correlation with the chances of them being involved in accidents or claims and there are studies that show this to be true. A company will evaluate individuals that they have previously insured based on claim history along with their credit report and assign groups for drivers with similar characteristics.

One should keep in mind that scores are used very differently than the way a lender uses them to predict the likelihood of a consumer repaying a loan. While lenders use the actual score provided by the credit bureaus, each insurer has a different method of determining an "insurance score" and scores can vary from each company. Each carrier will likely take following into consideration when determining scores:

• Past delinquencies
• Bankruptcies
• Debt ratios (how close a consumer is using their credit limit)
• New credit inquiries
• Length of credit history
• Types of credit

Particular states are very strict about the way that car insurance companies are allowed to use credit history and keep a close eye on how it is being used. In many states it is allowed to be used to calculate a policyholder's premium, but cannot be the sole reason for a denial, cancellation or non-renewal. In addition, most states require insurers to give a reason to the consumer if an adverse action is taken on their policy and provide an explanation. An adverse action includes denial or termination of coverage and rate increases.

http://www.onlineautoinsurance.com/learn/why-car-insurance-companies-use-credit/

[Bird mama]

Thank you Irish. Funny thing is I have fantastic credit and have gotten into more accidents than my sister who has a lessor credit rating.