IND. DOI, AG DISAGREE ON WHAT ‘SOLE USE’ OF CREDIT MEANS:

Indiana’s attorney general recently released an advisory opinion that directly butts heads with an earlier bulletin from the state’s insurance department on the meaning of “sole use” in Indiana’s new law regarding the use of credit scoring. The Indiana Department of Insurance had issued Bulletin 123 interpreting the meaning of the “sole use” restriction language in the National Conference of Insurance Legislators (NCOIL) insurance scoring model bill that has been adopted by the Indiana legislature and the legislatures of 18 other states. Under the department’s interpretation, more than one factor, in addition to an insurance score, would have to change in order for an insurer to use that score as an underwriting or rating tool. The national implications of this opinion are also significant as the National Association of Insurance Commissioners (NAIC) Credit Scoring Working Group continues its work on a guide to assist regulators in interpreting the NCOIL language.