Following on the heels of the National Conference of Insurance Legislators (“NCOIL”) Secretary George Keiser’s testimony in support of the use of credit-based insurance scoring to the United States House of Representatives Subcommittee on Oversight & Investigations, NCOIL adopted a Resolution Supporting State Regulation of the Use of Credit Information in Personal Insurance (the “Resolution”) on July 13, 2008. To see our recent blog entry on the House Financial Services Oversight and Investigation Subcommittee hearing regarding “The Impact of Credit-Based Insurance Scoring on the Availability and Affordability of Insurance,” click here.
The Resolution highlights the successful adoption in 26 states of the NCOIL Model Act Regarding Use of Credit Information in Personal Insurance. In addition, the Resolution asserts that H.R. 5633, the Nondiscriminatory Use of Consumer Reports and Consumer Information Act of 2008 and H.R. 6062, the Personal Lines of Insurance Fairness Act of 2008, both of which seek to end the use of credit scores as an alleged proxy for race-based insurance scoring, are unnecessary intrusions in state-based regulation of insurance rates. Further, the Resolution asserts that both pieces of federal legislation ignore existing state legislative and regulatory efforts to create fairness in insurance credit scoring and disregard legislatures’ ability to determine what is best for their states.