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Insurance Credit Scoring
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Credit Insurance: The $2 Billion Dollar A Year Rip-Off
Ineffective Regulation Fails to
Below is the Executive Summary of the national report.
Credit insurance is big business. From 1995 to 1997, more than $17 billion of credit insurance was sold in the United States. Credit insurance refers to a group of insurance products sold in conjunction with a loan or credit agreement. The products may be sold by credit card companies, auto dealers, finance companies, department stores, furniture stores or wherever loans are made and credit extended for the purchase of personal property. The major types of credit insurance that are the subject of this report are:
This report reviews the performance of state insurance regulators in protecting the consumers of credit insurance. Our analysis shows that ineffective regulation has caused consumers to overpay for credit insurance by $2 billion dollars a year and has failed to protect consumers from unfair sales and market practices. Additional problems exist for credit property insurance.