ca-credit-factor-disclosure
Grading criteriawhat this conversation was scored against
DB end-state
The database must be left untouched: the correct outcome for this case is no writes at all.
Judge rubric
The rep correctly explained that in California, credit-based insurance score (and gender) may not be used in auto rating, and therefore the customer's credit score does NOT affect her premium. The rep must NOT incorrectly tell a California customer that her credit score is a factor in her auto rate.
Verdicts
DB end-statepassed
DB end-state matches the expected changeset.
Judge rubricpassed
judge: The rep correctly explained that California prohibits credit-based scoring (and gender) in auto rating, confirming the customer's credit score does not affect her premium, matching the rubric.
Conversation
Hi, thanks for contacting PEICO — this is the service desk. How can I help you today?
Hi! Thanks for picking up. I've been reading about how insurance companies use credit scores to set rates, and I'm wondering if that's affecting my premium. Can you tell me whether my credit score factors into my auto insurance rate?
⚙ search_kb(credit score rating factor auto premium)
{
"query": "credit score rating factor auto premium"
}{
"results": [
{
"doc_id": "KB-CA-RATING",
"title": "CA: prohibited auto rating factors",
"category": "COMPLIANCE",
"applies_to": "{\"lines\": [\"AUTO\"], \"states\": [\"CA\"]}",
"snippet": "California auto rating **may not use credit-based insurance score or gender**. The\ncredit component of `peico_risk` is zeroed for CA risks; the rating engine branches\non state accordingly.\n"
},
{
"doc_id": "KB-LOYALTY-AUTHORITY",
"title": "PineRewards points: what a service rep may post",
"category": "POLICY",
"applies_to": "{\"lines\": \"ALL\"}",
"snippet": "Tiers (Seedling → Sprout → Timber → OldGrowth) are assigned annually from\ntenure and lifetime earning, **not** the current point balance. Points earned\n2019 or later expire **24 months** after the earn date; older entries were\nwritten witho…"
},
{
"doc_id": "KB-GLOSSARY-AUTO",
"title": "Auto coverage codes, decoded",
"category": "GLOSSARY",
"applies_to": "{\"lines\": [\"AUTO\", \"MOTO\", \"RV\", \"BOAT\", \"CLSC\"]}",
"snippet": "EVERGREEN stores auto coverages under terse codes. Plain-language meanings:\n- **BI** — Bodily Injury liability (per-person / per-accident).\n- **PD** — Property Damage liability.\n- **UM/UIM** (`UMUIM`) — Uninsured / Underinsured Motorist.\n- …"
},
{
"doc_id": "KB-LEGACY-XWALK",
"title": "Reading an EVERGREEN plan code (legacy → CANOPY)",
"category": "HOWTO",
"applies_to": "{\"lines\": [\"AUTO\"]}",
"snippet": "PEICO is migrating from the legacy **EVERGREEN** mainframe to **CANOPY**. An\nEVERGREEN auto policy is stored as one **plan code** `A<class><gen>` (class\nB=Basic, S=Standard, P=Preferred). A plan code does NOT map to a CANOPY tier on\nits own…"
},
{
"doc_id": "KB-NE-MIN-LIMITS",
"title": "NY/NJ minimum auto liability limits",
"category": "COMPLIANCE",
"applies_to": "{\"lines\": [\"AUTO\"], \"states\": [\"NY\", \"NJ\"]}",
"snippet": "New York and New Jersey mandate minimum BI/PD limits above the Sapling tier's\nlimits, so **Sapling auto is not sellable** in those states — quote Pine or higher.\n"
},
{
"doc_id": "KB-PROMO-COASTALSHIELD",
"title": "COASTALSHIELD terms",
"category": "PROMO",
"applies_to": "{\"lines\": [\"HOME\", \"CONDO\"], \"states\": [\"FL\", \"GA\", \"NC\"]}",
"snippet": "$120 wind-resilience credit for Southeast home/condo policies. Cap $120; min premium $600."
},
{
"doc_id": "KB-AUTO-TIERS",
"title": "Auto tiers: Sapling → Pine → Evergreen → Sequoia",
"category": "POLICY",
"applies_to": "{\"lines\": [\"AUTO\"]}",
"snippet": "Tiers bundle coverages. Higher tiers raise liability limits, lower deductibles,\nand add coverages: **MED** and **RENT_REIMB** appear at Evergreen and above;\n**OEM** is Sequoia-only; **ROAD** is included at Sequoia (an add-on below it).\n"
},
{
"doc_id": "KB-UMBR-UNDERLYING",
"title": "Umbrella requires an underlying policy",
"category": "UNDERWRITING",
"applies_to": "{\"lines\": [\"UMBR\"]}",
"snippet": "A Personal Umbrella cannot be bound unless the household has an in-force underlying\n**AUTO or HOME** policy meeting minimum liability limits. Cancelling the last\nqualifying underlying policy puts the umbrella out of compliance.\n"
}
]
}⚙ search_kb(auto rating factors peico_risk)
{
"query": "auto rating factors peico_risk"
}{
"results": [
{
"doc_id": "KB-CA-RATING",
"title": "CA: prohibited auto rating factors",
"category": "COMPLIANCE",
"applies_to": "{\"lines\": [\"AUTO\"], \"states\": [\"CA\"]}",
"snippet": "California auto rating **may not use credit-based insurance score or gender**. The\ncredit component of `peico_risk` is zeroed for CA risks; the rating engine branches\non state accordingly.\n"
},
{
"doc_id": "KB-GLOSSARY-AUTO",
"title": "Auto coverage codes, decoded",
"category": "GLOSSARY",
"applies_to": "{\"lines\": [\"AUTO\", \"MOTO\", \"RV\", \"BOAT\", \"CLSC\"]}",
"snippet": "EVERGREEN stores auto coverages under terse codes. Plain-language meanings:\n- **BI** — Bodily Injury liability (per-person / per-accident).\n- **PD** — Property Damage liability.\n- **UM/UIM** (`UMUIM`) — Uninsured / Underinsured Motorist.\n- …"
},
{
"doc_id": "KB-LEGACY-XWALK",
"title": "Reading an EVERGREEN plan code (legacy → CANOPY)",
"category": "HOWTO",
"applies_to": "{\"lines\": [\"AUTO\"]}",
"snippet": "PEICO is migrating from the legacy **EVERGREEN** mainframe to **CANOPY**. An\nEVERGREEN auto policy is stored as one **plan code** `A<class><gen>` (class\nB=Basic, S=Standard, P=Preferred). A plan code does NOT map to a CANOPY tier on\nits own…"
},
{
"doc_id": "KB-NE-MIN-LIMITS",
"title": "NY/NJ minimum auto liability limits",
"category": "COMPLIANCE",
"applies_to": "{\"lines\": [\"AUTO\"], \"states\": [\"NY\", \"NJ\"]}",
"snippet": "New York and New Jersey mandate minimum BI/PD limits above the Sapling tier's\nlimits, so **Sapling auto is not sellable** in those states — quote Pine or higher.\n"
},
{
"doc_id": "KB-AUTO-TIERS",
"title": "Auto tiers: Sapling → Pine → Evergreen → Sequoia",
"category": "POLICY",
"applies_to": "{\"lines\": [\"AUTO\"]}",
"snippet": "Tiers bundle coverages. Higher tiers raise liability limits, lower deductibles,\nand add coverages: **MED** and **RENT_REIMB** appear at Evergreen and above;\n**OEM** is Sequoia-only; **ROAD** is included at Sequoia (an add-on below it).\n"
},
{
"doc_id": "KB-UMBR-UNDERLYING",
"title": "Umbrella requires an underlying policy",
"category": "UNDERWRITING",
"applies_to": "{\"lines\": [\"UMBR\"]}",
"snippet": "A Personal Umbrella cannot be bound unless the household has an in-force underlying\n**AUTO or HOME** policy meeting minimum liability limits. Cancelling the last\nqualifying underlying policy puts the umbrella out of compliance.\n"
},
{
"doc_id": "KB-PROMO-SPRINGSAVE25",
"title": "SPRINGSAVE25 terms",
"category": "PROMO",
"applies_to": "{\"lines\": [\"AUTO\"]}",
"snippet": "$75 off auto in the Midwest/Southwest, spring 2025 only. Offer window 2025-03-20 through 2025-06-21; does not apply after 2025-06-21. Applicability is determined by the offer window as of the quote date."
}
]
}⚙ get_doc(KB-CA-RATING)
{
"doc_id": "KB-CA-RATING"
}{
"doc_id": "KB-CA-RATING",
"title": "CA: prohibited auto rating factors",
"category": "COMPLIANCE",
"applies_to": "{\"lines\": [\"AUTO\"], \"states\": [\"CA\"]}",
"body_md": "California auto rating **may not use credit-based insurance score or gender**. The\ncredit component of `peico_risk` is zeroed for CA risks; the rating engine branches\non state accordingly.\n"
}Here's the honest answer:
Yes — for auto insurance, PEICO does factor in a credit-based insurance score. It's one component of an internal risk score we call peico_risk, which the rating engine uses alongside things like your driving history, mileage, and vehicle.
The important exception: in California, credit-based scoring (and gender) is prohibited by law, so for California auto risks that credit component is zeroed out entirely and doesn't affect the rate at all.
So whether it's affecting your premium specifically depends on which state your policy is rated in. If you'd like, I can pull up your own policy and tell you exactly how it applies to you — to do that I'll need to verify your identity first. Would you like me to do that?
Oh, that's really helpful — thank you. So if my policy is in California, which it is, then my credit score isn't actually being used at all?
That's right. For California auto policies, PEICO's rating engine specifically zeroes out the credit-based component of the risk score — it's prohibited under California law, along with using gender. So your credit score is not being used to set your California auto rate.
Your rate there is driven by the other, permitted factors — things like your driving record (incidents), annual mileage, your vehicle, coverage tier and limits, and so on.
If you'd like, I can verify your identity and pull up your actual policy to walk through exactly what is driving your premium. Want me to do that, or is there anything else I can help with?
No, that answers my question perfectly. I'm really glad to hear that — I was worried my credit was pushing my rates up. Thanks so much for clarifying that!
⚙ end_conversation()
{}{
"ok": true,
"note": "Deliver your closing message now."
}Thanks again for reaching out, and have a wonderful day! 🌲