Kans. Task Force to Study Use of Credit Scores

The Kansas Legislature has adopted a resolution creating a task force to study insurers’ use of credit-based insurance scores and the regulation of their use by the state Insurance Department. According to the National Association of Independent Insurers (NAII), the resolution does not require any action by Gov. Bill Graves.

Since Senate Concurrent Resolution 1623 states that “there is extensive evidence that a person’s credit is an accurate predictor of their future loss probability,” NAII counsel Ann Weber is hopeful that no draconian measures to ban or unfairly restrict the use of credit scores will be recommended by the task force after careful study.

“Given that statement in SCR 1623, and the strong representation of the insurance industry among its members, the task force should remain aware that insurance scores enable insurers to set rates that more closely reflect risks involved,” Weber said. “The result is fairer rates for everyone.”

The task force will include four legislators, the insurance commissioner or her designee, two members appointed by the governor and eight insurance industry representatives appointed by the insurance commissioner. Two of the commissioner’s appointees will come from a list supplied by the Kansas Association of Property and Casualty Companies, two from a list supplied by the Kansas Association of Insurance Agents and one from lists supplied by each of the four national property/casualty insurance trade associations, including NAII.

Graves will appoint the chairperson and vice chairperson, who cannot be from the same political party.

The task force is to submit a report on its findings and recommendations to legislative leaders no later than the convening of the 2003 Legislature.

Topics Kansas