Concerned about the use to credit scoring in setting insurance rates, Kansas Insurance Commissioner Kathleen Sebelius urged the state legislature to pass a resolution (1623) requiring the Kansas Insurance Department to study the issue.
According to the department, Sebelius took a bill to the Legislature in 1998 that would have placed restrictions on the use of credit scores to determine rates but that bill did not pass. Currently there is no Kansas law prohibiting insurers’ use of credit scoring.
Sebelius stated that although she understands why companies want to use credits scoring, she is “very concerned about the unfairness that the use of credit scoring may create, particularly for people whose credit is bad for reasons beyond their control, such as an unexpected health problem.”
She urged the Legislature to pass the resolution so that her office can study the issue for the protection of Kansas’ consumers.
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