What penalties, if any, do insurance companies face if they use credit scoring as a means of determining premiums?
FSCO can issue a Cease and Desist Order to an insurer as well as require the insurer to remedy the situation where the insurer uses credit scores or credit information as a means of determining premiums. Failure to comply with the regulatory ban can also result in a charge under the Insurance Act, which upon conviction can lead to fines of up to $100,000 for a first conviction and $200,000 for subsequent convictions.
