Insurance Scores

What are Insurance Scores?

Insurance Scoring

UPC Insurance and its affiliates consider many factors when determining your premium. This includes an evaluation of a combination of information, such as your loss history, home property characteristics and your insurance score. The following information explains how using insurance scores helps UPC Insurance determine eligibility as well as the premium you pay.

What are Insurance Scores?
Insurance scores are an objective tool that are predictive of insurance claims and losses, which is why UPC Insurance and other insurers uses this information. Insurance scores help streamline our decision process in order to offer better coverage and pricing our customers and keep our overall rates competitive. Some of the variables used in calculating an insurance score are: outstanding debt, length of credit history, late payments, new applications for credit, types of credit used, payment patterns, available credit, public records, and past due amounts.

What variables are NOT used in calculating an insurance score?
Race, color, religion, national origin, gender, marital status, sexual orientation, age, address, salary, disability, occupation, title, employer, date employed or employment history are not used for scoring purposes. Additionally, inquiries made for account reviews, promotions, or insurance purposes are not used in calculating an insurance score. Finally, other variables that, by law, may not be considered, are also disregarded.

Is an Insurance Score the Same as a Credit Score?
Although the insurance score is based, in part, on a consumer’s credit information, an insurance score measures the potential for future loss, while a credit score measures the probability of repayment, of the likelihood of default, on a credit obligation.

An insurance score is provided to UPC Insurance through third-party vendors; however, these third-party vendors neither make the decision regarding UPC Insurance’s rates, nor can they provide you with any reason a particular underwriting decision was made.

What Happens if My Insurance Score Impacts My Premium or Eligibility for Coverage?
If UPC Insurance determines you will not receive our best rate, or coverage is denied, a notice will be sent to you in accordance with the Fair Credit Reporting Act. The notice will explain what information from your credit report or loss history information impacted your insurance premium. The notice will also explain your rights under the Fair Credit Reporting Act and provide you with instructions to contact the consumer reporting agencies, dispute any inaccurate information, and appeal any insurance score you do not agree with.

If you have any questions, please contact your agent.

Helpful Links
For further information on this topic, you may want to visit the following sites:

Fair Isaac Consumer Education Website

LexisNexis Personal Reports Website

A Summary of Your Rights Under FCRA