The Alaska Senate’s recent passage of legislation that would restrict insurers’ use of credit information came after lengthy negotiations among all interested parties, but still falls short of enabling insurers to effectively use this important and fair underwriting tool, according to the National Association of Independent Insurers (NAII).
“While the NAII believes the Senate’s version of Senate Bill 13 is generally a good effort to address issues related to insurers’ use of credit information, we believe the House should amend three provisions in the Senate-passed bill,” said Sam Sorich, NAII’s vice president and western regional manager.
NAII is seeking the following three amendments:
·Eliminate a provision that would prevent an insurer from re-rating a policy based on new credit information, which would hurt consumers who have improved their credit histories, Sorich said.
·Eliminate a provision that would prevent the use of a credit history that is more than 60 days old. The 60-day time frame is too short, and NAII fears that this provision would make it difficult for many agents to provide underwriting services to their customers.
·Eliminate a provision that would require insurers to develop insurance scoring models that are unique to Alaska. NAII is concerned that this provision would discourage insurers from entering the Alaska insurance market.
“NAII urges the House to consider amendments to address these three important issues,” Sorich said.
Topics Carriers Legislation
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