Can an insurer deny coverage based on an applicant's credit score in West Virginia?

In West Virginia, an insurer is allowed to use an applicant's credit score as a factor in determining insurance coverage, but there are specific guidelines and requirements that must be followed. This practice is regulated to ensure fairness in how credit information is used, meaning that while credit scores can influence coverage decisions, insurers must adhere to rules that protect consumers from inappropriate denial of coverage or unfair discrimination.

Insurers are also required to inform applicants when their credit information is used in the underwriting process and must provide the applicant with the opportunity to contest any inaccuracies in their credit report. This regulation helps maintain transparency and allows applicants to understand why their coverage may be affected by their credit status.

The other choices present conditions that do not align with the broader regulatory framework established in West Virginia. There's no outright ban on using credit scores, nor is it restricted solely to specific thresholds or previous denials, making the first choice the most accurate reflection of the law.