The Personal Insurance Federation of California (PIFC) chided Assemblyman Tom Calderon for amending AB 5, which would eliminate the use of financial stability information-or credit scoring- used by insurers as a tool in underwriting insurance policies in the state.
Diane Colborn, PIFC vice president of legislative & regulatory affairs, commented “This is a misguided attempt that will deny financially responsible consumers with good credit the benefits of a discount on their insurance and cause other policyholders to unfairly subsidize high risk insureds throughout the state.”
Colburn continued to say “Eliminating the use of credit is totally irresponsible because it would make California law the most stringent in the United States…. We are disappointed with Assemblyman Calderon’s extreme position on this issue, and do not think it is in the best interest of the vast majority of consumers who have good credit.”
The PIFC further stated that they hope Calderon will reconsider his amendment before the bill is heard in the Senate Insurance Committee.
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