What is the Definition of Credit Score?
The number produced by an analysis of an individual’s credit history. The use of credit information affects all consumers in many ways, including getting a job, finding a place to live, securing a loan, getting telephone service and buying insurance. Credit history is routinely reviewed by insurers before issuing a commercial policy because businesses in poor financial condition tend to cut back on safety, which can lead to more accidents and more claims. Auto and home insurers may use information in a credit history to produce an insurance score. Insurance scores may be used in underwriting and rating insurance policies. (See Insurance score)
Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/
Label: Insurance
Theme: Dictionary of Insurance Terms
Other Questions: What is the definition of Insurance?
What is the Definition of Credit Score?
Check out other definition of insurance terms below:
What is the Meaning of BINDER In Insurance Terms?
Temporary authorization of coverage issued prior to the actual insurance policy.
What is the Meaning of BLANKET INSURANCE In Insurance Terms?
Coverage for more than one type of property at one location or one type of property at more than one location. Example: chain stores.
What is the Meaning of BODILY INJURY LIABILITY COVERAGE In Insurance Terms?
Portion of an auto insurance policy that covers injuries the policyholder causes to someone else.
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