Wednesday, September 22, 2010

AOL continues discussion on homeowner's, auto insurance and identity, CLUE and FICO

AOL offered a guide on homeowner’s insurance today similar to one offered by MSN in April of this year. AOL stressed the idea that sometimes phone calls asking whether a minor loss is covered can affect a CLUE report. The report is by Candy Evans, is called “Know what you’re buying”, and distinguishes between “bare bones” coverage (the standard companies) and luxury or Cadillac coverage. The link is here.

People can have property insurance problems because of “pre-existing conditions” from CLUE reports just as with health insurance. Previous owners on a property could have an effect. So can someone’s FICO score, which can be affected by identity theft.

Several states have passed laws prohibiting insurance companies from reporting to CLUE inquiries that don’t result in claims.

Another point is that sometimes real property and auto insurance can be packaged for a discount, and if offered for a married couple, is cheaper if autos are titled in both names. This would discriminate against same-sex couples in states that don’t recognize same-sex marriage.

Check Lexis-Nexis for its explanation of property and subject home and auto reports, and samples.  The reports apparently show claims made before a subject acquired the property but identify them as such. Note mention of the FACT (Fair and Sccurate Credit Transactions) Act.

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