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.

Passedcustomer: Priya Anand · 7 turns · 21s · $0.03 · 36k tok in

Verdicts

DB end-statepassed

DB end-state matches the expected changeset.

Judge rubricpassed

judge: The rep correctly told the California customer that credit-based insurance score cannot be used in auto rating there, so her credit score does not affect her premium, matching the rubric.

Conversation

Agent

Hi, thanks for contacting PEICO — this is the service desk. How can I help you today?

Customer

Hi! I wanted to ask about my auto insurance premium. I've been reading that credit scores can affect rates, and I'm wondering if that's what's happening with mine. Is my credit score being used to calculate my premium?

Agent

I can help with that.

To tell you whether your specific PEICO auto policy is using credit in its pricing, I’ll need to look up your account first. Please provide any two of the following so I can verify you:

Full name
Date of birth
Policy number
Email address
Phone number
Legacy account number

If you’d rather ask generally, I can also explain how PEICO handles credit-based rating for auto insurance without accessing your account.

4,739 in · 105 out · $0.0039 · 2.8s

Customer

I can give you my name and date of birth. It's Priya Anand, and my date of birth is March 30, 1988.

Agent

⚙ query_db(SELECT cust_id, first_name, last_name, dob, email, phone, legacy_acct, status…)

{
  "sql": "SELECT cust_id, first_name, last_name, dob, email, phone, legacy_acct, status FROM customers WHERE first_name = 'Priya' AND last_name = 'Anand' AND dob = '1988-03-30'"
}

{
  "rows": [
    {
      "cust_id": "CUST-ca-masked-auto",
      "first_name": "Priya",
      "last_name": "Anand",
      "dob": "1988-03-30",
      "email": "priya.anand@example.com",
      "phone": null,
      "legacy_acct": null,
      "status": "CUSTOMER"
    }
  ],
  "row_count": 1,
  "truncated": false
}

⚙ query_db(SELECT p.policy_id, p.line, p.status, p.effective_date, p.expiration_date, p.…)

{
  "sql": "SELECT p.policy_id, p.line, p.status, p.effective_date, p.expiration_date, p.rating_as_of, p.final_premium_cents, p.base_premium_cents, p.tier_id, p.rating_inputs, p.premium_breakdown FROM policies p WHERE p.cust_id = 'CUST-ca-masked-auto' AND p.line = 'AUTO' ORDER BY CASE WHEN p.status = 'ACTIVE' THEN 0 ELSE 1 END, p.created_at DESC"
}

{
  "rows": [
    {
      "policy_id": "POL-ca-masked-auto-p_auto",
      "line": "AUTO",
      "status": "ACTIVE",
      "effective_date": "2025-03-10",
      "expiration_date": "2026-03-10",
      "rating_as_of": "2025-03-10",
      "final_premium_cents": 147023,
      "base_premium_cents": 175080,
      "tier_id": "AUTO:EVERGREEN",
      "rating_inputs": "{\"billing\": {\"plan\": \"AUTOPAY_MONTHLY\", \"autopay\": true, \"paperless\": true}, \"incidents_5yr\": 0, \"smoker\": false, \"promo_code\": null}",
      "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}]"
    }
  ],
  "row_count": 1,
  "truncated": false
}

⚙ search_kb(auto credit score rating use insurance score credit-based insurance score und…)

{
  "query": "auto credit score rating use insurance score credit-based insurance score underwriting pricing auto states",
  "limit": 5
}

{
  "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-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-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-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-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…"
    }
  ]
}

Thanks, Priya — I found your account.

For your auto policy, credit is not being used to calculate your premium.

Why I can say that:

Your policy appears to be in California
PEICO’s California auto rating rules say credit-based insurance score cannot be used for auto pricing there

From your current rating breakdown, the factors affecting your premium are things like:

your tier
region
driver age
annual miles
vehicle age
driving incidents history
selected coverages
discounts like safe driver, paperless, and autopay

I do see a generic internal risk score factor in the rating output, but for California the credit component is excluded under PEICO’s rules.

If you want, I can also walk through what is driving your premium the most on this policy in plain English.

17k in · 423 out · $0.02 · 6.2s

Customer

Oh, that's really good to know — thank you for clarifying that. So California doesn't allow credit to be used, which means my score isn't making me pay more. That answers my question. I appreciate you explaining that.

Agent

⚙ end_conversation()

{}

{
  "ok": true,
  "note": "Deliver your closing message now."
}

You’re very welcome, Priya — glad I could clear that up. Thanks for choosing PEICO, and have a great day!

14k in · 44 out · $0.01 · 4.4s