The Michigan Supreme Court says insurance companies can use credit reports in determining rates.
LANSING (AP) -- The Michigan Supreme Court says it's legal for insurance companies to consider credit reports when setting rates.
The court says state regulators exceeded their authority when they banned the practice as discriminatory. It was a 4-3 decision Thursday with Justice Elizabeth Weaver joining the court's three most conservative members.
Insurance companies say people with strong credit reports make fewer claims and deserve lower rates than people with weak credit reports.
In a dissent, Chief Justice Marilyn Kelly says uncertainty about the accuracy of credit reports make them an unreliable tool to set rates.
While the case has been in courts, insurers have been allowed to use credit reports.
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