The Oregon Senate Judiciary Committee unanimously voted to pass Senate Bill 260, which would prohibit insurance carriers from using credit information for underwriting and rating policies, the National Association of Independent Insurers (NAII) said. SB 260 now heads to the Senate floor for a vote.
Committee members also considered amendments to SB 280, which would allow insurers to use credit information subject to a number of
restrictions. The measure, however, was put aside for lack of consensus among insurers on the amendments, according to Sen. Minnis, chairman of the committee.
The NAII is disappointed with the outcome since SB 260 bans insurers from using the credit-based insurance score of a consumer who is applying for or renewing a homeowners or personal automobile insurance policy.
NAII believes that regulations addressing credit issues, set to take
effect June 1, should be given adequate time to determine whether it does a good enough job providing reasonable consumer protections. The regulation mandates insurers disclose its use of insurance scores and prohibits insurers from using insurance scoring as the sole reason to cancel or non-renew policies. According to the NAII, the regulation balances the need for consumer disclosure and preserves the industry’s ability to use this accurate, unbiased, and predictive underwriting measure.
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