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 repeatedly explained that California law prohibits using credit-based insurance scores in auto rating, confirmed the customer's credit score is excluded (weight 0, masked), and clearly stated it does not affect her premium.
Conversation
Hi, thanks for contacting PEICO — this is the service desk. How can I help you today?
Hi! I'm calling about my auto insurance policy. I've been reading some stuff online about how insurance companies use credit scores in their pricing, and I'm wondering if that's affecting my premium with PEICO. Can you tell me if my credit score is actually factoring into what I'm paying?
⚙ search_kb(credit score)
{
"query": "credit score"
}{
"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-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."
}
]
}⚙ search_kb(credit)
{
"query": "credit"
}{
"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-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."
}
]
}⚙ search_kb(peico_risk)
{
"query": "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"
}
]
}⚙ search_kb(insurance score)
{
"query": "insurance score"
}{
"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-DISC-WHOLE-LIFE",
"title": "Whole life disclosures: surrender, cash value, not an investment",
"category": "COMPLIANCE",
"applies_to": "{\"lines\": [\"LIFE_W\"]}",
"snippet": "Before binding whole life, disclose and record: (1) **surrender charges** apply for\nthe first several policy years and reduce early cash value; (2) cash value accrues\nslowly and may be borrowed against, reducing the death benefit; (3) whole…"
},
{
"doc_id": "KB-DISC-HLTH-SUPP",
"title": "Supplemental health: not major-medical; pre-existing limits",
"category": "COMPLIANCE",
"applies_to": "{\"lines\": [\"HLTH\"]}",
"snippet": "Disclose and record that this is **supplemental** coverage (accident / critical\nillness / hospital indemnity) and **NOT ACA major-medical** — it does not satisfy a\ncoverage mandate and does not replace health insurance. Pre-existing conditi…"
}
]
}⚙ query_db(SELECT * FROM customers LIMIT 5;)
{
"sql": "SELECT * FROM customers LIMIT 5;"
}{
"rows": [
{
"cust_id": "CUST-prospect-il-auto",
"legacy_acct": null,
"legacy_mismatch": 0,
"status": "PROSPECT",
"first_name": "Aaron",
"last_name": "Halloway",
"dob": "1992-08-04",
"email": "aaron.halloway@example.com",
"phone": null,
"address_id": "ADDR-prospect-il-auto",
"peico_risk": 702,
"risk_components": "{\"prior_claims\": {\"value\": 0, \"points\": 0}, \"late_payments\": {\"value\": 0, \"points\": 0}, \"tenure\": {\"value\": 0, \"points\": 0}, \"credit\": {\"value\": 705, \"points\": 2, \"weight\": 1, \"masked\": false, \"note\": null}}",
"tenure_start": null,
"loyalty_tier": null,
"loyalty_points": 0,
"created_at": "2025-06-01"
},
{
"cust_id": "CUST-nest-household",
"legacy_acct": "EVG2241K7",
"legacy_mismatch": 0,
"status": "CUSTOMER",
"first_name": "Marisol",
"last_name": "Trujillo",
"dob": "1980-06-15",
"email": "marisol.trujillo@example.com",
"phone": null,
"address_id": "ADDR-nest-household",
"peico_risk": 765,
"risk_components": "{\"prior_claims\": {\"value\": 0, \"points\": 0}, \"late_payments\": {\"value\": 0, \"points\": 0}, \"tenure\": {\"value\": 10, \"points\": 40}, \"credit\": {\"value\": 762, \"points\": 25, \"weight\": 1, \"masked\": false, \"note\": null}}",
"tenure_start": "2015-04-01",
"loyalty_tier": "Timber",
"loyalty_points": 4200,
"created_at": "2025-06-01"
},
{
"cust_id": "CUST-heritage-auto",
"legacy_acct": "EVG0098H1",
"legacy_mismatch": 0,
"status": "CUSTOMER",
"first_name": "Walter",
"last_name": "Pennington",
"dob": "1957-11-02",
"email": "walter.pennington@example.com",
"phone": null,
"address_id": "ADDR-heritage-auto",
"peico_risk": 731,
"risk_components": "{\"prior_claims\": {\"value\": 1, \"points\": -45}, \"late_payments\": {\"value\": 0, \"points\": 0}, \"tenure\": {\"value\": 20, \"points\": 60}, \"credit\": {\"value\": 740, \"points\": 16, \"weight\": 1, \"masked\": false, \"note\": null}}",
"tenure_start": "2004-09-01",
"loyalty_tier": "OldGrowth",
"loyalty_points": 6100,
"created_at": "2025-06-01"
},
{
"cust_id": "CUST-ca-masked-auto",
"legacy_acct": null,
"legacy_mismatch": 0,
"status": "CUSTOMER",
"first_name": "Priya",
"last_name": "Anand",
"dob": "1988-03-30",
"email": "priya.anand@example.com",
"phone": null,
"address_id": "ADDR-ca-masked-auto",
"peico_risk": 699,
"risk_components": "{\"prior_claims\": {\"value\": 0, \"points\": 0}, \"late_payments\": {\"value\": 1, \"points\": -25}, \"tenure\": {\"value\": 6, \"points\": 24}, \"credit\": {\"value\": 815, \"points\": 0, \"weight\": 0, \"masked\": true, \"note\": \"CA: credit-based score excluded by law\"}}",
"tenure_start": "2019-06-01",
"loyalty_tier": "Sprout",
"loyalty_points": 900,
"created_at": "2025-06-01"
},
{
"cust_id": "CUST-fl-coastal-home",
"legacy_acct": null,
"legacy_mismatch": 0,
"status": "CUSTOMER",
"first_name": "Gloria",
"last_name": "Esposito",
"dob": "1969-07-19",
"email": "gloria.esposito@example.com",
"phone": null,
"address_id": "ADDR-fl-coastal-home",
"peico_risk": 715,
"risk_components": "{\"prior_claims\": {\"value\": 1, \"points\": -45}, \"late_payments\": {\"value\": 0, \"points\": 0}, \"tenure\": {\"value\": 13, \"points\": 52}, \"credit\": {\"value\": 720, \"points\": 8, \"weight\": 1, \"masked\": false, \"note\": null}}",
"tenure_start": "2012-05-01",
"loyalty_tier": "Timber",
"loyalty_points": 3300,
"created_at": "2025-06-01"
}
],
"row_count": 5,
"truncated": false
}I would be happy to help you with that!
At PEICO, we use a custom risk score called the PEICO Risk Score to help determine your premium. For most states, a credit-based insurance score is one of the components factored into this score, alongside other details like your insurance tenure, prior claim history, and payment history.
However, how we use it depends heavily on where you live. For example, if you reside in California, state law strictly prohibits insurance companies from using credit-based insurance scores (as well as gender) for auto rating. In California, we completely exclude and mask your credit score, giving it a weight of zero so it does not affect your premium at all.
To see exactly how your premium is calculated and check if a credit-based score is currently factoring into your rate, I'd love to look up your policy details. Could you please share:
- Your full name
- Your policy number (or the email/phone number associated with your account)
Once I have those details, I can verify your identity and give you the specific breakdown!
Oh wow, that's actually really helpful — thank you! So you're saying that in California, credit score doesn't factor in at all? That's a relief. I'm Priya Anand, and I'm in Sacramento, so that would apply to me, right?
⚙ query_db(SELECT c.*, a.line1, a.city, a.state, a.zip, a.region FROM customers c JOIN…)
{
"sql": "SELECT c.*, a.line1, a.city, a.state, a.zip, a.region \nFROM customers c \nJOIN addresses a ON c.address_id = a.address_id \nWHERE c.first_name = 'Priya' AND c.last_name = 'Anand';"
}{
"rows": [
{
"cust_id": "CUST-ca-masked-auto",
"legacy_acct": null,
"legacy_mismatch": 0,
"status": "CUSTOMER",
"first_name": "Priya",
"last_name": "Anand",
"dob": "1988-03-30",
"email": "priya.anand@example.com",
"phone": null,
"address_id": "ADDR-ca-masked-auto",
"peico_risk": 699,
"risk_components": "{\"prior_claims\": {\"value\": 0, \"points\": 0}, \"late_payments\": {\"value\": 1, \"points\": -25}, \"tenure\": {\"value\": 6, \"points\": 24}, \"credit\": {\"value\": 815, \"points\": 0, \"weight\": 0, \"masked\": true, \"note\": \"CA: credit-based score excluded by law\"}}",
"tenure_start": "2019-06-01",
"loyalty_tier": "Sprout",
"loyalty_points": 900,
"created_at": "2025-06-01",
"line1": "920 Sunset Blvd",
"city": "Sacramento",
"state": "CA",
"zip": "95814",
"region": "R-W"
}
],
"row_count": 1,
"truncated": false
}⚙ query_db(SELECT * FROM policies WHERE cust_id = 'CUST-ca-masked-auto';)
{
"sql": "SELECT * FROM policies WHERE cust_id = 'CUST-ca-masked-auto';"
}{
"rows": [
{
"policy_id": "POL-ca-masked-auto-p_auto",
"cust_id": "CUST-ca-masked-auto",
"line": "AUTO",
"tier_id": "AUTO:EVERGREEN",
"status": "ACTIVE",
"effective_date": "2025-03-10",
"expiration_date": "2026-03-10",
"term_months": 12,
"rating_as_of": "2025-03-10",
"base_premium_cents": 175080,
"final_premium_cents": 147023,
"premium_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 \\u00d71.28\", \"factor\": 1.28, \"amount_cents\": null, \"running_cents\": 115200}, {\"step\": \"BASE\", \"code\": \"region:R-W\", \"detail\": \"region factor \\u00d71.25\", \"factor\": 1.25, \"amount_cents\": null, \"running_cents\": 144000}, {\"step\": \"RISK\", \"code\": \"factor:driver_age\", \"detail\": \"driver_age=36 \\u00d71.0\", \"factor\": 1.0, \"amount_cents\": null, \"running_cents\": 144000}, {\"step\": \"RISK\", \"code\": \"factor:risk_score\", \"detail\": \"risk_score=699 \\u00d71.0\", \"factor\": 1.0, \"amount_cents\": null, \"running_cents\": 144000}, {\"step\": \"RISK\", \"code\": \"factor:annual_miles\", \"detail\": \"annual_miles=10000 \\u00d71.0\", \"factor\": 1.0, \"amount_cents\": null, \"running_cents\": 144000}, {\"step\": \"RISK\", \"code\": \"factor:vehicle_age\", \"detail\": \"vehicle_age=3 \\u00d71.1\", \"factor\": 1.1, \"amount_cents\": null, \"running_cents\": 158400}, {\"step\": \"RISK\", \"code\": \"factor:incidents_5yr\", \"detail\": \"incidents_5yr=0 \\u00d70.95\", \"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\": \"\\u221212%\", \"factor\": 0.88, \"amount_cents\": null, \"running_cents\": 154070}, {\"step\": \"DISCOUNT\", \"code\": \"PAPERLESS\", \"detail\": \"\\u2212$25\", \"factor\": null, \"amount_cents\": -2500, \"running_cents\": 151570}, {\"step\": \"DISCOUNT\", \"code\": \"AUTOPAY\", \"detail\": \"\\u22123%\", \"factor\": 0.97, \"amount_cents\": null, \"running_cents\": 147023}]",
"rating_inputs": "{\"billing\": {\"plan\": \"AUTOPAY_MONTHLY\", \"autopay\": true, \"paperless\": true}, \"incidents_5yr\": 0, \"smoker\": false, \"promo_code\": null}",
"underlying_policy_id": null,
"bundle_id": null,
"rep_id": "REP-1005",
"created_at": "2025-06-01"
}
],
"row_count": 1,
"truncated": false
}Yes, Priya, that absolutely applies to you! I see your account here in Sacramento, CA.
To ensure your privacy and fully verify your identity before we go over your policy details, could you please confirm either your date of birth or the email address associated with your account?
Sure, my date of birth is March 30, 1988.
Thank you for confirming, Priya! That matches our records perfectly, and I have successfully verified your identity.
I can confirm with 100% certainty that your credit score is NOT affecting your premium with PEICO.
Here is exactly what we see on your Sacramento, California policy:
-
Your Credit Score is Completely Excluded: Under California law, insurance companies are prohibited from using credit-based insurance scores to determine auto insurance rates. In your profile, your credit score is listed as 815 (which is an exceptional credit score!), but its rating weight is set to 0 and it is flagged as masked. This means it has absolutely zero impact on what you pay.
-
How Your PEICO Risk Score (699) is Actually Calculated: Instead of credit, your risk score is built from a baseline of 700 and adjusted only by other eligible factors:
- Prior Claims: You have 0 claims on your record with us, resulting in 0 points deducted.
- Tenure (Loyalty): You have been with PEICO since June 2019 (6 years of tenure), which added +24 points to your score.
- Late Payments: There is 1 recorded late payment, which subtracted -25 points.
- Credit Score: Set to 0 points (excluded by law).
Putting those together: $700 + 0 - 25 + 24 = 699$.
Your active auto policy (POL-ca-masked-auto-p_auto) is rated using this risk score of 699, which keeps your annual premium at $1,470.23.
So, you can rest easy knowing that your premium is calculated entirely without your credit score, in full compliance with California regulations.
Is there anything else about your coverage, premium, or account that I can help you look into today?
That's excellent — thank you so much for clarifying that and breaking it down! I really appreciate you explaining exactly how my score is calculated and confirming that my credit isn't affecting my rate. That puts my mind at ease. I don't have any other questions right now. This answered exactly what I needed to know.
⚙ end_conversation()
{}{
"ok": true,
"note": "Deliver your closing message now."
}You are very welcome, Priya! It was an absolute pleasure assisting you today. Thank you for being a loyal PEICO customer since 2019, and please don't hesitate to reach back out if you ever need anything else.
Have a wonderful rest of your day!