Alaska insurance consumers will benefit if a measure under consideration is approved, according to the Property Casualty Insurers Association of America.
SB 55 will clarify that discounts many insurers provide to consumers based on credit-based insurance scores can be applied not only for new policies, but also at renewal. Alaska is currently the only state in the nation that allows insurers to consider credit information for new policies, but not when a policy renews.
“SB 55 would protect discounts consumers receive on home and auto insurance because of their history of responsible credit use – discounts that insurers are forced by the current law to remove when a policy renews after two years,” Kenton Brine, PCI assistant vice president, said in a statement. “The bill would protect existing safeguards for consumers, and would require that consumers receive a notice when their credit history has adversely affected their insurance premium. SB 55 will improve competition in Alaska’s insurance market by encouraging companies to enter the market or to expand the products and price points they offer to Alaska consumers.”
Without SB 55, many Alaska consumers pay more than they should because their credit history cannot be considered when their policy renews after two years, according to PCI.