A bill outlining various consumer protections regarding the use of credit-based insurance scores has passed the Vermont House and Senate and has been allowed to become law without the governor’s signature, effective May 28.
Vermont was one of a handful of states without a comprehensive law governing insurance scoring, according to the national trade association Property Casualty Insurers Association of America (PCI).
House Bill 593 (HB 593) was an omnibus consumer protection bill which addressed insurance scoring as well as a variety of other issues such as automatic contract renewals for services year-after-year, like magazine subscriptions, gym memberships and media streaming services.
“Vermont’s legislative leaders are to be commended for studying this issue and using the National Council of Insurance Legislators (NCOIL) model on insurers’ use of credit information,” said Frank O’Brien, vice president of state government relations for PCI, in a PCI press release. “Insurance scoring benefits the majority of consumers, and this new law strikes the right balance by adopting widely accepted consumer protections and permitting insurers to use this proven tool in underwriting and rating.”
PCI works to promote and protect the viability of a competitive private insurance market for the benefit of consumers and insurers. It is composed of approximately 1,000 member companies and 340 insurance groups, representing a cross section of home, auto and business insurers.
Source: Property Casualty Insurers Association of America
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