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 and clearly stated that California law prohibits credit-based rating factors, confirmed the customer's credit score does not affect her premium, and never claimed credit was a rating factor.
Conversation
Hi, thanks for contacting PEICO — this is the service desk. How can I help you today?
Hi, thanks for taking my chat. I'm calling about my auto insurance policy. I've been reading about how insurers use credit scores to set rates, and I'm wondering if my credit score is affecting what I pay for my premium. Can you help me understand that?
I'd be happy to help you understand how your premium is calculated. Let me first verify your identity so I can pull up your specific policy, and then I'll walk you through what actually drives your rate.
Could you give me your name and either your email or phone number on file (or your customer ID) so I can locate your account?
My name is Priya Anand. You should be able to find me in the system with that — I'm a customer in Sacramento, California. Just use whatever contact information you have on file for me.
⚙ query_db(SELECT cust_id, first_name, last_name, email, phone, address_id FROM customer…)
{
"sql": "SELECT cust_id, first_name, last_name, email, phone, address_id FROM customers WHERE first_name LIKE 'Priya' AND last_name LIKE 'Anand'"
}{
"rows": [
{
"cust_id": "CUST-ca-masked-auto",
"first_name": "Priya",
"last_name": "Anand",
"email": "priya.anand@example.com",
"phone": null,
"address_id": "ADDR-ca-masked-auto"
}
],
"row_count": 1,
"truncated": false
}I found an account under your name. To verify it's you, could you confirm the email address or date of birth we have on file? (I can't just use the contact info on file to verify you — you'll need to provide it so I can match it.)
Oh, okay. My date of birth is March 30, 1988.
⚙ query_db(SELECT cust_id, dob FROM customers WHERE cust_id = 'CUST-ca-masked-auto')
{
"sql": "SELECT cust_id, dob FROM customers WHERE cust_id = 'CUST-ca-masked-auto'"
}{
"rows": [
{
"cust_id": "CUST-ca-masked-auto",
"dob": "1988-03-30"
}
],
"row_count": 1,
"truncated": false
}⚙ query_db(SELECT policy_id, line, tier_id, status, base_premium_cents, final_premium_ce…)
{
"sql": "SELECT policy_id, line, tier_id, status, base_premium_cents, final_premium_cents, rating_as_of FROM policies WHERE cust_id = 'CUST-ca-masked-auto' AND line = 'AUTO'"
}{
"rows": [
{
"policy_id": "POL-ca-masked-auto-p_auto",
"line": "AUTO",
"tier_id": "AUTO:EVERGREEN",
"status": "ACTIVE",
"base_premium_cents": 175080,
"final_premium_cents": 147023,
"rating_as_of": "2025-03-10"
}
],
"row_count": 1,
"truncated": false
}⚙ price_check(POL-ca-masked-auto-p_auto)
{
"policy_id": "POL-ca-masked-auto-p_auto"
}{
"as_of": "2025-03-10",
"facts": {
"line": "AUTO",
"tier": "EVERGREEN",
"region": "R-W",
"state": "CA",
"term_months": 12,
"peico_risk": 699,
"age": 36,
"billing_plan": "AUTOPAY_MONTHLY",
"autopay": true,
"paperless": true,
"loyalty_tier": "Sprout",
"status": "CUSTOMER",
"has_bundle": false,
"active_lines": 1,
"is_new_first_policy": false,
"promo_code": null,
"coverages": [
"MED",
"RENT_REIMB",
"UMUIM"
],
"driver_age": 36,
"annual_miles": 10000,
"vehicle_age": 3,
"incidents_5yr": 0,
"exposure_count": 1
},
"base_premium_cents": 175080,
"final_premium_cents": 147023,
"breakdown": [
{
"step": "BASE",
"code": "base",
"detail": "base_rate $900",
"factor": null,
"amount_cents": null,
"running_cents": 90000
},
{
"step": "BASE",
"code": "tier:EVERGREEN",
"detail": "tier factor ×1.28",
"factor": 1.28,
"amount_cents": null,
"running_cents": 115200
},
{
"step": "BASE",
"code": "region:R-W",
"detail": "region factor ×1.25",
"factor": 1.25,
"amount_cents": null,
"running_cents": 144000
},
{
"step": "RISK",
"code": "factor:driver_age",
"detail": "driver_age=36 ×1.0",
"factor": 1,
"amount_cents": null,
"running_cents": 144000
},
{
"step": "RISK",
"code": "factor:risk_score",
"detail": "risk_score=699 ×1.0",
"factor": 1,
"amount_cents": null,
"running_cents": 144000
},
{
"step": "RISK",
"code": "factor:annual_miles",
"detail": "annual_miles=10000 ×1.0",
"factor": 1,
"amount_cents": null,
"running_cents": 144000
},
{
"step": "RISK",
"code": "factor:vehicle_age",
"detail": "vehicle_age=3 ×1.1",
"factor": 1.1,
"amount_cents": null,
"running_cents": 158400
},
{
"step": "RISK",
"code": "factor:incidents_5yr",
"detail": "incidents_5yr=0 ×0.95",
"factor": 0.95,
"amount_cents": null,
"running_cents": 150480
},
{
"step": "COVERAGE",
"code": "MED",
"detail": "+ MED $45",
"factor": null,
"amount_cents": 4500,
"running_cents": 154980
},
{
"step": "COVERAGE",
"code": "RENT_REIMB",
"detail": "+ RENT_REIMB $30",
"factor": null,
"amount_cents": 3000,
"running_cents": 157980
},
{
"step": "COVERAGE",
"code": "UMUIM",
"detail": "+ UMUIM $110",
"factor": null,
"amount_cents": 11000,
"running_cents": 168980
},
{
"step": "FEES",
"code": "policy_fee",
"detail": "+ policy fee",
"factor": null,
"amount_cents": 2500,
"running_cents": 171480
},
{
"step": "FEES",
"code": "installment",
"detail": "+ fractional-pay surcharge",
"factor": null,
"amount_cents": 3600,
"running_cents": 175080
},
{
"step": "DISCOUNT",
"code": "SAFE_DRIVER",
"detail": "−12%",
"factor": 0.88,
"amount_cents": null,
"running_cents": 154070
},
{
"step": "DISCOUNT",
"code": "PAPERLESS",
"detail": "−$25",
"factor": null,
"amount_cents": -2500,
"running_cents": 151570
},
{
"step": "DISCOUNT",
"code": "AUTOPAY",
"detail": "−3%",
"factor": 0.97,
"amount_cents": null,
"running_cents": 147023
}
]
}Great — I've got your full rate breakdown in front of me. Here's the short answer and then the detail.
Your credit score is not affecting your premium. In California, insurers are prohibited by law from using credit-based factors for auto rates, and true to that, there's no credit factor anywhere in your rating. Your risk score in the system (699) is a PEICO risk figure — and notably it's set to a ×1.0 factor, meaning it's neutral and not moving your price up or down.
Here's what actually drives your premium of $1,470.23/year:
Starting point
- Base rate: $900
- Your tier (Evergreen): ×1.28
- Your region (Western CA): ×1.25
- → subtotal $1,440
Risk factors (these are about your driving/vehicle, not credit)
- Driver age 36: ×1.0 (neutral)
- PEICO risk score 699: ×1.0 (neutral)
- Annual mileage 10,000: ×1.0 (neutral)
- Vehicle age 3 years: ×1.1 (adds a bit)
- 0 incidents in 5 years: ×0.95 (a small break for clean record)
Coverages you carry
- Medical payments: +$45
- Rental reimbursement: +$30
- Uninsured/underinsured motorist: +$110
Fees
- Policy fee: +$25
- Installment (fractional-pay) surcharge: +$36
Discounts
- Safe driver: −12%
- Paperless: −$25
- Autopay: −3%
So the factors that matter for you are your tier, region, vehicle age, driving record, the coverages you've chosen, and your billing setup — not credit.
One thing worth flagging: you're paying a $36 installment surcharge for paying in fractions rather than in full. If you paid the annual premium in full, you'd avoid that surcharge (and possibly qualify for a paid-in-full discount). Want me to look into what paying in full would save you? And is there anything else I can help with?
That's really helpful, thank you. That answers my question — I'm glad to know my credit score isn't affecting my rate at all. I appreciate you walking through all those details. I'm all set for now. Thanks for the help!
⚙ end_conversation()
{}{
"ok": true,
"note": "Deliver your closing message now."
}Take care, Priya!