The Indiana General Assembly has removed a provision in Indiana law requiring insurance companies to re-rate an insurance policy at least once every three years based on current credit information.
The decision to re-run credit information will be left to Indiana consumers, who can request a re-rating with current credit information at the annual renewal of the policy, according to the Insurance Institute of Indiana.
The “three-year look back” provision was put into law in 2003 to benefit consumers. Legislators believed people’s credit scores would improve over time and their insurance premiums would drop as new scores were re-run.
Given these difficult economic times, however, it is not clear that credit scores are going up. As a result, insurers informed lawmakers that the mandatory three-year look back may have an adverse effect consumers.
The new law takes effect July 1, 2009.
Topics Legislation
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