Alaska consumers will benefit from a proposed law that will enable insurers to use insurance scoring when a homeowner or auto policy is renewed, according to the Property Casualty Insurers Association of America.
SB 127 was passed out of the Senate State Affairs Committee this week.
Current law enables consumers to benefit from the use of credit scoring when they first obtain an insurance policy, but that benefit is stripped away when the policy is renewed, said Armand Feliciano, PCI lobbyist.
“SB 127 will allow consumers to retain their discounts from insurance scoring when they renew their policy,” he said. “Alaska’s current law has led to market disruption for consumers when insurers are prevented from using insurance scoring when the policy is renewed.”
According to PCI, Arkansas has had a flexible insurance scoring law on the books since 2003, during which time 40 percent of policyholders have received a discount when insurance scoring was used on renewal.
“Alaska consumers deserve the opportunity to retain their discount they received when they first purchased their policy,” Feliciano said.
SB 127 will now move to the Senate Labor and Commerce Committee.