Allstate Faces Another Class Action Suit Over Credit Scoring

Last week, Allstate settled one class-action lawsuit over their use of
credit scoring. However, before they finish breathing a sigh of
relief….well, I’ll let the Madison County Record continue the
story:

Nine Madison County residents and one St. Clair County
resident filed a class action lawsuit against Allstate Insurance Company
alleging the insurance company charges different premiums to customers with
the same risks.[...]

“Through the simultaneous use of multiple and differing insurance scoring
schemes, Allstate has continuously and systematically engaged in an unlawful
pattern and practice of unfair discrimination against consumers in Illinois
in the determination of rates, premiums, policy pricing and/or availability
of insurance,” the complaint alleges.

The plaintiffs claim the use of multiple and differing scoring schemes is
not based on sound actuarial principles. They also allege Allstate has used
them as a basis for charging varying premiums even though they all have
similar risks.

When I get back to Connecticut, I’m going to see if I can score a copy of
the suit. I can think of a couple of different meanings of “multiple and
differing insurance scoring schemes”, and I’m just wondering which one
applies in this case. (Are they referring to the use of different models on
auto vs. homeowners insurance; are they using different models for their
standard auto program versus their nonstandard program; or ….?)