NAII Tells Mo. House Committee Scores Benefit Most Consumers

February 14, 2002

Insurers’ use of credit-based insurance scores benefits most consumers because it makes insurance available to more consumers, at a lower cost according to the National Association of Independent Insurers (NAII).

NAII Counsel Ann Weber urged the state House Insurance Committee not to restrict the use of insurance scores. The committee is considering House Bill 1502, which, in its original form, would prohibit the use of insurance scores as the sole factor in underwriting decisions. The bill also would set certain requirements for insurers that take actions adversely affecting consumers based on those scores.

Weber said NAII has been working with insurance agents, who are the major supporters of HB 1502, in an effort to develop a compromise that would not harm consumers and would be suitable to everyone involved.

“Anything that impairs an insurer’s use of insurance scores, or adds unnecessary and time-consuming steps in the process, deprives consumers of the benefits of this very useful and accurate tool for predicting future insurance claims,” Weber said.

“Insurance scores help ensure that consumers pay premiums that reflect their risks, and thus are fairer to everyone,” she added. “The majority of consumers, who have favorable insurance scores, will not be forced to subsidize higher risk individuals.”

HB 1821, a still more restrictive insurance scoring bill drafted by Gov. Bob Holden’s office, was introduced last week but has not yet been scheduled for committee action. Still another bill on the same subject, Senate Bill 981, is pending in the Senate Committee on Insurance and Housing.

Topics Missouri

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