As anticipated, the Missouri House late last week passed and sent to the Senate without further changes a bill regulating insurers’ use of credit-based insurance scores.
Earlier last week, the House rejected proposed amendments to the committee substitute for House Bill 1520 and 1821 pushed by Gov. Bob Holden and the state Insurance Department that would have undermined the value of using insurance scores.
National Association of Independent Insurers (NAII) Counsel Ann Weber said that insurers had worked extensively with insurance agents on the language of the committee substitute. She reiterated that using insurance scores enables auto and homeowners insurers to establish premiums that accurately reflect the risks involved, which is fairer to all consumers.
Provisions of HB 1502 and 1821 include:
Insurers cannot use credit information as the sole factor in underwriting decisions.
Insurers cannot take an adverse action solely on the basis that an insurance applicant or customer does not have an established credit rating.
Consumers are given guidance on how to obtain their credit reports and how to challenge disputed information.
Language clarifies that insurance scores will be affected by shopping for insurance.