The Kansas Senate has voted 39-0 for legislation that would prohibit insurers from using credit-based insurance scoring as the sole basis for underwriting and rating personal lines insurance.
Senate Bill 144 is a hybrid of recommendations from the legislative task force on insurance scoring established last session, the model act developed by the National Conference of Insurance Legislators (NCOIL), the insurance commissioner, agents and the insurance industry.
The bill allows policyholders to request that their scores be rerun and considered once a year. If the score is run at the request of the policyholder, the information can only be used to benefit the consumer. Insurers must rerun scores at least once every three years. However, insurers can rerun scores more often if it is part of its standard underwriting process. If the insurer runs the score, the information may be used to increase or decrease rates.
A different Senate bill would have prohibited the sole-basis scoring and prohibit the use of scoring at renewal.
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