Credit Bill Moves to Desk of Mo. Governor

A bill that would allow Missouri consumers to continue enjoying the benefits of credit-based insurance scoring passed the Missouri Senate and now awaits the signature of Governor Bob Holden, according to the American Insurance Association (AIA). The bill has the strong support of the AIA and other property and casualty industry organizations, including the state insurance agents’ association.

“The Missouri legislature has passed a bill that would protect Missouri consumers and allow them to save money on their insurance premiums,” Paul C. Blume, Jr., AIA vice president, midwest region, commented. “AIA urges the governor to put his signature on this beneficial public policy.”

The bill, which passed the House on April 18, would prohibit insurers from using credit as the sole factor in underwriting decisions and would require insurers to disregard credit as an underwriting factor if the individual has no credit history. The bill’s language clarifies that consumers would not damage their credit rating by shopping for the best deal on insurance. In addition, the bill would provide guidance to consumers about their rights under the federal Fair Credit Reporting Act, including how to obtain their credit reports and how to have inaccurate information removed from their reports.

Throughout the 2002 legislative session, the insurance industry and the state’s agent community worked closely with legislators to ensure that Missouri passed one of the most consumer-focused credit bills in the country. “The way the industry and the agents worked together on this issue was truly remarkable,” Blume added. “When all sides work together toward a common goal, consumers can come out ahead.”

Topics Missouri