The Property Casualty Insurers Association of America expressed disappointment over the decision of the Massachusetts Joint Committee on Insurance to approve SB 2093.
The bill would place a total ban on the use of credit-based insurance scores for the purpose of rating homeowners or personal auto policies.
“Despite the wealth of information provided to the Committee on the benefits and actuarial soundness of using insurance scores, we are once again facing additional restrictions on the ability of insurers to operate in a reasonable environment in this market,” stated Frank O’Brien, PCI vice president and New England regional manager.
“Unlike most states, where the use of insurance scores are permitted, or allowed with some limited regulatory guidelines, the measure reported by the Committee would take the drastic step of banning the practice altogether,” he continued. “In doing so, the bill’s supporters are ignoring the impact that this will have on customers who benefit from having good credit histories.
“We will continue our efforts to educate the Legislature relative to the benefits of using insurance scores in the underwriting process,” O’Brien concluded.
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