INSURANCE

Allstate Checking Applicants’ Credit Records: The Hartford, Conn.-based insurance company said it is checking the credit histories of applicants for new auto policies in at least 36 states to weed out bad risks, a practice consumer advocates say could start a trend in the industry. Allstate, the nation’s second-largest carrier of car insurance, is also considering whether to make the credit checks routine for new homeowners policies. New applicants with poor credit records may be rejected or offered coverage at higher prices, but current policyholders will not be dropped solely because of credit problems, the Sears, Roebuck & Co. subsidiary has told regulators. Use of credit reports in selecting insurance customers is legal in most states.