A proposed Alabama insurance department regulation dealing with the use of credit scoring would help clarify the use of credit in the state, according to the National Association of Independent Insurers, especially since it includes changes suggested at a recent hearing.
“Proposed Regulation 482-1-127 is closely based on the credit scoring model developed by the National Conference of Insurance Legislators (NCOIL) and is generally supported by the insurance industry,” said James S. Taylor, southeastern regional manager for the NAII.
The insurance department held a hearing yesterday on proposed regulation. Participants suggested several enhancements that were made to the proposal, including an allowance for third parties to file credit scoring models for insurers, and clarifying language dealing with the use of information other than credit scores in nonrenewals, cancellations or rate increases.
“We commend the commissioner for his dedication to working with the industry on this proposal,” Taylor added. “Allowing us to provide input will result in a more workable regulation that will benefit regulators, insurers and consumers.”
Topics Legislation Alabama
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