Property/casualty insuerrs are urging North Dakota lawmakers to defeat a bill that would preclude their use of credit scoring in calculating insurance premiums.
The North Dakota Senate Industry, Business & Labor Committee was scheduled to consider the bill, SB 2330, today.
Enacted in 2003, the present North Dakota law is based on the National Conference of Insurance Legislators’ (NCOIL) model that is either legislation or regulation in at least 25 other states.
“The existing law is a balanced, common-sense approach to regulating the use of credit information that both protects consumers and allows insurers the reasonable use of this valuable tool. It should be retained,” said the industry group, the Amercian Insurance Association, in a letter to the committee members.
“Insurers are subject to strict legal standards for all risk classification variables, including credit, and the state of North Dakota has a strong regulatory system that has worked well for consumers and insurers. There is no need for any drastic action, as presented in SB 2330, that would unfairly penalize less risky consumers,” the letter added.
AIA member companies write more than 27 percent of the North Dakota property/casualty market.
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