The Georgia Senate unanimously approved legislation allowing insurers to use credit-based insurance scores in underwriting and rating homeowners and auto insurance coverage, according to the American Insurance Association (AIA). The bill now goes to Gov. Sonny Perdue for his signature.
“Yesterday’s passage of H.B. 215 is a victory for consumers and insurers alike,” said Raymond G. Farmer, AIA assistant vice president, southeast region. “Consumers benefit because insurers are able to more accurately underwrite and price their policies, allowing them to give better rates to customers who are less likely to have losses.”
H.B. 215, which passed the Senate by a vote of 47-0, reflects the consensus view of Georgia agents and carriers regarding the use of insurance scores. The legislation is based on the NCOIL model bill, which was approved by that body in November 2002. “For the first time Georgia will have standards in place for insurers to follow when using credit-based insurance scores in the underwriting and rating of personal lines policies,” Farmer said. “Also, the operational uniformity provided by the NCOIL model is a plus for insurers seeking to comply with new credit-related laws and regulations across the country.”
H.B. 215 passed the House of Representatives by a vote of 166-4. Assuming the legislation is signed by Gov. Perdue, its effective date will be July 1, 2003.
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