Oregon Bill Evaluates Merits of Re-Rating Insurance/Credit Score

The Oregon Legislature is considering a bill that would prohibit an insurer that issues personal insurance policies in the state to cancel, or non-renew a policy after evaluating the individual’s credit history or insurance score according to his or her request. The bill also would prohibit the insurer from raising the consumer’s premium based on the requested re-rating.

If passed, Senate Bill 377 would apply to policies that have been in effect more than 60 days. The bill would, however, allow an insurer to use a consumer’s credit history to decline coverage of personal insurance in the initial underwriting decision in combination with other factors. If the insurer uses the consumer’s credit history or insurance score to determine the consumer’s personal insurance rating category, the consumer may request no more than once per year that htei nsurer re-rate the consumer. If the consumer requests a re-rating, the insurer must complete it within 10 days. And, if, based on the re-rating, the consumer qualifies for a more favorable rating category, the insurer shall reduce the premiums on all of the personal insurance policies the consuemr holds, according to bill text.

According to the Independent Insurance Agents and Brokers of Oregon, it’s important to note that “credit score is not the same as [an] insurance score.” The association believes the bill, if passed, would increase the workload to companies, and people with the same score could wind up paying different rates.

For more information, visit http://www.leg.state.or.us/09reg/measpdf/sb0300.dir/sb0377.intro.pdf.

Source: Oregon Legislature, IIABA

Topics Oregon