A state Senate committee approved on Feb. 27 House Bill 110, which would allow insurers to use credit-based insurance scores only to provide discounts to their auto insurance customers.
The Senate Transportation and Public Safety Committee declined to amend the bill to also allow insurance scores to be used in underwriting, but another attempt to attach such an amendment might be made on the Senate floor. Committee members wanted to push the bill out now to improve its chances of receiving floor action before the legislature adjourns March 8.
“While allowing insurers to use insurance scores in underwriting would make the bill somewhat better, we oppose any action that impedes insurers’ ability to charge most of the customers lower rates because of their favorable insurance scores,” Ann Weber, National Association of Independent Insurers (NAII) counsel, said.
“Insurance scores have clearly proven their accuracy in predicting the likelihood that a person will subsequently file an insurance claim,” Weber added. “Since most consumers have good scores, this valuable tool enables them to pay less for their insurance and thus not have to subsidize drivers who pose greater risks.”
Topics Politics
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