A Wisconsin Assembly bill that would prohibit insurers from using credit information in rating or underwriting auto or homeowners insurance would undermine the state’s stable insurance market and could increase premiums for consumers.
“The supporters of Assembly Bill 278 aren’t doing Wisconsin consumers any favors with this bill,” said Donald S. Cleasby, assistant vice president and assistant general counsel for the National Association of Independent Insurers (NAII). “When companies have the flexibility to use insurance scores, consumers — most of whom have good credit — benefit with lower premiums.”
The bill would prohibit private passenger automobile, homeowners or renters insurers from using credit information in a rating plan or to decline coverage, non-renew coverage or set premiums based on information in a credit report.
NAII members Progressive and Allstate testified against Assembly Bill 278 at a recent hearing before the Assembly Insurance Committee.
The committee also heard testimony on Assembly Bill 491, which requires insurers to offer “sponsorship coverage” to adult sponsors of minors who engages in negligence or willful misconduct.
Under Wisconsin law, the application of a minor for a drivers license must be signed by his or her parent, step-parent or other adult sponsor. If the minor causes damage while operating a motor vehicle, both the minor and the adult sponsor are jointly and severally liable for damages.
NAII provided research assistance to the Wisconsin Insurance Alliance in lobbying against this bill, Cleasby said.
“We researched how many other states had similar laws and found no other state that requires the insurance coverage, and only a few states that make the parent or guardian similarly
liable,” he noted. “Auto insurance consumers already have the choice to purchase additional coverage to cover this liability, so no government mandates are necessary.”
In other action:
— Assembly Bill 317, a product liability reform bill, passed out of the Assembly Judiciary Committee on Oct. 21. This legislation imposes requirements needed to recover from a product manufacturer, distributor, assembler or seller in a product liability lawsuit.
— Senate Bill 49, an expert witness requirement bill, passed out of the Senate Judiciary Committee on Oct. 2. This bill brings Wisconsin’s evidentiary laws for admission of expert testimony in line with current federal standards. Current Wisconsin law is more relaxed in terms of when expert evidence may be admitted.
— Senate Bill 227, which imposes standards on health care professionals regarding malpractice activities, passed out of committee on Oct. 7. Topics include making the state responsible for disciplining specified health care professionals; allowing the Medical Examining Board to limit credentials of a health care professional and to impose forfeitures; requiring insurers to
report to a federal data bank information about payments made under an insurance policy or in settlement of a malpractice claim; and requiring the coroner or medical examiner to report therapeutic-related deaths to the state.
Several new insurance-related bills were introduced this month, including:
— Assembly Bill 595 and Senate Bill 289, which create immunity from civil liability for claims resulting from a person’s weight gain, obesity or health condition caused by the consumption of food.
— Assembly Bill 597, which creates prohibitions and restrictions related to electronic mail solicitations.
— Senate Bill 275, which imposes regulatory requirements for the practice of chiropractic.
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