Insurance Companies Ask Michigan Supreme Court For Relief LANSING, MI (MPRN) -

The Michigan Supreme Court will open its new session Tuesday by hearing arguments on whether insurance companies should be allowed to use credit scores to set rates.

Insurance companies say credit scores are a useful indicator of the risk posed by a customer. They say a lower credit score indicates a higher likelihood of filing expensive claims. Governor Granholm tangles often with the insurance industry, and her administration has been trying for at least four years to ban the use credit scores in setting rates. Granholm and other critics say credit scores have nothing to do with whether someone is a safe driver, and rates should be keyed strictly to driving records. Lower courts have split on the question.

The court will also hear arguments on whether the state owes school districts more money for requiring them to gather and electronically report information on students and employees. It will probably take weeks or months for the court to release its decisions in these cases. © Copyright 2012, MPRN