topic Re: Be VERY Aware of Lexis Nexis Insurance Scoring in General Credit Topics

Be VERY Aware of Lexis Nexis Insurance Scoring

Gonzozap — Mon, 19 Feb 2024 04:02:11 GMT

As most of us probably know, the insurance companies are robbing (many of) us blind with the "insurance scoring" charade. It all starts with Lexis Nexis (LN).

The issue with Lexis Nexis is that their data is often wrong, VERY WRONG. They confess that they pull data from all over the internet AND they make the claim that they are not responsible nor liable for any of the foolish, incorrect information they have about consumers. I have this in writing in a letter from them. AND, Lexis Nexis had a class action against them that began about 3 to 4 yrs ago. I received $810.00 from the settlement. $810 is a large settlement compared to what is usually paid to consumers in class actions.

BE VERY AWARE OF LEXIS NEXIS. Get a copy of your report, correct any errors, and be certain your insurer is using an updated report from Lexis Nexis, not one from 6 yrs ago when your credit wasn't as good. My recent report was 40 pages long and DID NOT include all the account information shown on the normal credit bureau report. The LN report contains a boatload of other personal information.

In my state, insurers are permitted to use old, outdated reports and the insurer NEVER has to update the report UNLESS the insured requests an update. The problem with that is that the insurer doesn't tell the consumer about any of this. There are a few states that don't use insurance credit scoring. This type of scoring is nothing but a racket to scam more money from insureds. Note that they do NOT use your FICO credit score at all. Instead, the model takes all the info in your report and devises a new score. My scores are all over 800, yet I was still punished by the insurance scoring system for both my auto & homeowners. You'll be punished for having inquiries, for having too many accounts, for recently opening as few as 1 new account, blah blah blah. What the heck does any of this have to do with filing an insurance claim?

Some actuary from another planet has devised this nonsense and we are paying for it.

Re: Be VERY Aware of Lexis Nexis Insurance Scoring

CorpCrMgr1 — Mon, 19 Feb 2024 04:46:46 GMT

Thank you for posting this information.

Re: Be VERY Aware of Lexis Nexis Insurance Scoring

Zoostation1 — Mon, 19 Feb 2024 05:33:09 GMT

CBIS models punish you for too many cards, low average CL, any store cards at all, and more IIRC.

Re: Be VERY Aware of Lexis Nexis Insurance Scoring

TrapLine — Sun, 25 Feb 2024 18:33:25 GMT

Obtained my report and it was 52 pages.

Fortunate thing after a good review was everything was correct.

My view ... there are too many people keeping and reporting data!

Pull your Early Warning Report and get a shock ... add to that ChexSystems. Start your day all right?

Re: Be VERY Aware of Lexis Nexis Insurance Scoring

WhiteSturd — Mon, 11 Mar 2024 06:00:14 GMT

Wow, 52 pages is a lot of information to review! I'm glad to hear that everything was correct though. I agree that there seems to be an overwhelming amount of data being collected and reported these days. I'll take your advice and pull my Early Warning Report and check in with ChexSystems. Thanks for the heads up and have a great day!

Re: Be VERY Aware of Lexis Nexis Insurance Scoring

Brian_Earl_Spilner — Mon, 11 Mar 2024 07:00:41 GMT

LexisNexis is a data aggregator and analytics company. Their whole business is to gather any and all data about you to sell to other companies. A typo can end up in your report if they can link it to you. And while insurance does rely on LexisNexis pretty heavily, they're not the only ones making CBIS's. FICO actually created it. EX just notified me my new CBIS is ready, not that I care, as it can't be used in my state. If you're really concerned about accuracy you should also be pulling Sagestream, ARS, etc., as well, as many identification questions come from those reports along with LexisNexis and the big 3.

Re: Be VERY Aware of Lexis Nexis Insurance Scoring

Brian_Earl_Spilner — Mon, 11 Mar 2024 07:09:11 GMT

@WhiteSturd wrote:
Wow, 52 pages is a lot of information to review! I'm glad to hear that everything was correct though. I agree that there seems to be an overwhelming amount of data being collected and reported these days. I'll take your advice and pull my Early Warning Report and check in with ChexSystems. Thanks for the heads up and have a great day!

There's a lot of redundancy. For example, they will have multiple versions of your name and typos. Using my screen name you might find

Brian Earl Spilner

Brian Spilner

Brian E Spilner

Brien Spilner

Earl Spilner

Earl Brian Spilner

B E Spilner

E B Spilner

Then the same thing for your address history. Then your court history. And so on and so on. If there's a document or record online with your info, they probably have it. You'll see the same thing on your big 3 reports, but not quite at their level.

Re: Be VERY Aware of Lexis Nexis Insurance Scoring

Household61974 — Tue, 03 Sep 2024 16:25:32 GMT

I realize there's some age on this post, but I got wind of LexisNexis last year and pulled it.

Was surprised to see my driving history in the way of quick braking and quick acceleration on it. Made me look like a bad driver (though in my 50 years I've never had a ticket and had precisely one at-fault accident - I backed into a cement pillar.)

Where did that info come from? Bought a new 2022 GM vehicle two years ago. Came with a free one year subscriptions to Onstar, Sirius and wifi on it along with an app that I can start the vehicle with from anywhere.

I suspect one of those "features" is the culprit LN pulls from.

Right after that, our premiums DOUBLED (no exaggeration).

To add some fury, our 17 yo son got his drivers license last year. We expected the premium jump, but not doubled AGAIN!

$250 to $500 to $1000 per MONTH over about 18 months.

I did a wee bit of looking into at that time. Can't recall the specifics, but found something stating that once you purchase a car and allow those free services they forever track you, even if you don't subscribe to the service.

The super sleezy thing about it is that we PURPOSEFULLY do/will not allow our ins providers to install the "how you drive" tracking devices in our vehicles, no matter the discount offered. Yet, they're still accomplishing this.

Thanks for the reminder I need to look into this and find out who and how to stop it.

Re: Be VERY Aware of Lexis Nexis Insurance Scoring

TrapLine — Tue, 03 Sep 2024 18:43:26 GMT

Just for a laugh (I am not) Equifax many years back collected credit information but that was just part of it. They actually collected virtually any kind of information such as the neighbor does not like you, you part your hair funny, gossip and I could go on. It was obtained and used for ratings.

Now fortunately this practice was stopped by others as the person profiled had NO access to their file or ability to update or delete the erroneus information. I was part of their data base back then. Unreal ...

Re: Be VERY Aware of Lexis Nexis Insurance Scoring

Thomas_Thumb — Wed, 04 Sep 2024 04:33:35 GMT

The key point is insurers NEVER, let me repeat that, NEVER, need to pull an updated CBIS score unless YOU, the insured demand it IN WRITING. They typically only do it for the initial policy.

I've had State Farm for 40 years. Not sure when they started using LN CBIS as a factor in setting premiums. However, in 2018 I purchase an Audi A6 3.0T. I had them quote it as a replacement vehicle on my existing multicat policy. Also had it quoted as a stand alone policy. I expected the stand alone would cost more. NO, it cost 40% less. After much investigation, I come to find out new policies require them to pull a CBIS while old policies do not.

I mention having requested a CBIS check just 4 years ago. He said there is no record of an update and asked if I had filled out and signed a form. I said no form was involved. My new agent said a written request is required.

I filled out the request form and he submitted it. SF won't divulge your score but, my insurance premium putting the new car on my existing policy dropped $300 for 6 months - or $600 per year. Wow.

I have no doubt that my CBIS had been top tier since before 2005. Why? I rarely open accounts and our mortgage loan officer in 2005 said all my Fico scores and my wife's were above 800 at that time. Sure LN looks at other things but, based on reviewing those factors, I would have been top tier.

Clearly, the LN CBIS State Farm was using for me was likely from around 2000 and NEVER updated. Based on 15 years of an unjustified low rating vs what should have been top tier, I paid $6k to $9k in excess premiums.

IF YOUR CREDIT HAS IMPROVED DEMAND A RE-RATE BASED ON A NEW CBIS. Of course, if credit has tanked or you have a lot of new inquiries, don't ask.

Re: Be VERY Aware of Lexis Nexis Insurance Scoring

Household61974 — Tue, 03 Sep 2024 21:38:10 GMT

Are we talking pre-world wide web?

How did EQ obtain this info?
Better yet, how did you find out about it?

Re: Be VERY Aware of Lexis Nexis Insurance Scoring

Household61974 — Tue, 03 Sep 2024 21:52:26 GMT

Insurers never NEED to? Or they are not ALLOWED to?
I'd be so green when I realized that number!

I'm SO GLAD I see your reply saying to get a re-write based on CBIS. Our scores have been in the high 600's for years (10+) (primarily due to high credit utilization). Just in the last 30 days have we gone from low 700's to 850 (TU) and 825's (EQ & EX). Will def be requesting a form from insurer!

My mind is blown! How did I never know of this?

Re: Be VERY Aware of Lexis Nexis Insurance Scoring

Gonzozap — Tue, 03 Sep 2024 21:55:59 GMT

@Household61974 wrote:
I realize there's some age on this post, but I got wind of LexisNexis last year and pulled it.

Was surprised to see my driving history in the way of quick braking and quick acceleration on it. Made me look like a bad driver (though in my 50 years I've never had a ticket and had precisely one at-fault accident - I backed into a cement pillar.)

Where did that info come from? Bought a new 2022 GM vehicle two years ago. Came with a free one year subscriptions to Onstar, Sirius and wifi on it along with an app that I can start the vehicle with from anywhere.

I suspect one of those "features" is the culprit LN pulls from.

Right after that, our premiums DOUBLED (no exaggeration).

To add some fury, our 17 yo son got his drivers license last year. We expected the premium jump, but not doubled AGAIN!

$250 to $500 to $1000 per MONTH over about 18 months.

I did a wee bit of looking into at that time. Can't recall the specifics, but found something stating that once you purchase a car and allow those free services they forever track you, even if you don't subscribe to the service.

The super sleezy thing about it is that we PURPOSEFULLY do/will not allow our ins providers to install the "how you drive" tracking devices in our vehicles, no matter the discount offered. Yet, they're still accomplishing this.

Thanks for the reminder I need to look into this and find out who and how to stop it.

Wow. That's pretty darn awful. Home and auto insurance are just the latest in ways big business has found to fleece America consumers. A LexisNexis report ignores credit scores which for umpteen years has been the way businesses would decide if the customer was a good or bad risk. Now, actuaries are on the scene and have found this NEW way to take advantage.

About your automobile, I read somewhere that sometime real soon, ALL new cars will have this technology and our insurance will rate us based on HOW, where, how long, etc. we drive our cars.

Good luck with everything.

Re: Be VERY Aware of Lexis Nexis Insurance Scoring

Gonzozap — Tue, 03 Sep 2024 21:59:20 GMT

@Zoostation1 wrote:
CBIS models punish you for too many cards, low average CL, any store cards at all, and more IIRC.

Also too many inquiries, too many recently opened accounts, not enough credit history. So to the many people in this community who nonchalantly just apply for one credit card after the other, it might come to bite you in the butt on insurance premums.

Re: Be VERY Aware of Lexis Nexis Insurance Scoring

TrapLine — Wed, 04 Sep 2024 00:31:06 GMT

Thomas_Thumb

Good information! A reality check for sure.

Did not know and being overcharged certainly does not make my day!

Re: Be VERY Aware of Lexis Nexis Insurance Scoring

Zoostation1 — Wed, 04 Sep 2024 04:22:37 GMT

I've been with State Farm since 2005, and I don't know when they last pulled mine, but if it was 2005 I at least had a clean profile back then. Not knowing when they last pulled makes me a bit leery of poking the bear on that one.

Re: Be VERY Aware of Lexis Nexis Insurance Scoring

Thomas_Thumb — Wed, 04 Sep 2024 04:57:09 GMT

@Household61974 wrote:
Insurers never NEED to? Or they are not ALLOWED to?
I'd be so green when I realized that number!

I'm SO GLAD I see your reply saying to get a re-write based on CBIS. Our scores have been in the high 600's for years (10+) (primarily due to high credit utilization). Just in the last 30 days have we gone from low 700's to 850 (TU) and 825's (EQ & EX). Will def be requesting a form from insurer!

My mind is blown! How did I never know of this?

Do a search of CBIS on this forum and you will see multiple threads relating to CBIS. LexisNexis is the primary CBIS and State Farm uses them. Between 2015-2018 consumers were able to purchase LN CBIS scores for $12.95 a pop. Sometime in 2018 they shutdown consumer access. You can still see their reason codes list for scoring. Anyway, that's how I know/knew my scores - different scoring metrics and different score range than Fico. A screen shot from my 2017 report is pasted below.

Note: Not all insurance companies use CBIS. Of those that do, not all use LN scores.

Here is a breakdown of scores from one insurer who sets top tier at 829-997 and some data on how score can affect rate:

Re: Be VERY Aware of Lexis Nexis Insurance Scoring

Zoostation1 — Wed, 04 Sep 2024 04:36:45 GMT

Everytime I see/hear about shutting down consumer access my blood boils. I'm a firm believer that it should be a mandatory requirement that any non-internal credit based score used (regardless of whether used in a credit decision or rate setting) be available to the consumer.

Re: Be VERY Aware of Lexis Nexis Insurance Scoring

Thomas_Thumb — Wed, 04 Sep 2024 05:01:53 GMT

@Household61974 wrote:
Are we talking pre-world wide web?
How did EQ obtain this info?
Better yet, how did you find out about it?

I know an old company called (Amoco) had locations around North America that were connected by PROFS back in 1988. I recall windows 3.1, floppy discs and crude messaging. These were proprietary networks, not the worldwide web as we now know it. Nonetheless databases and corporate sharing of information electronically was possible back then. Scoring of consumers really started taking off in the late 1990s.

LN does use information from EQ credit reports but also much data from other sources.

Re: Be VERY Aware of Lexis Nexis Insurance Scoring

Household61974 — Wed, 04 Sep 2024 14:05:37 GMT

Here's one for you . . . Eastern Airlines.

I learned to type in HS on an IBM Sentric. Used DOS at my first "adult" job. I can still hear the battle cry of the dot matrix printer getting jammed up with the green and white striped paper.