On April 26, 2004, the New Jersey Department of Banking and Insurance (“NJDBI”) issued Bulletin No. 04-05 advising property & casualty insurers that they may use credit scoring in determining an insured’s rate provided that consumer protection measures are established, including, but not limited to providing rate, underwriting and classification exceptions for consumers whose credit information has been directly influenced by extraordinary life events, such as a serious illness, temporary loss of employment; divorce; or identity theft, to name a few. In such cases, the insurer may consider only credit information not affected by the event or must assign a neutral credit score.

In September 2009, the NJDBI issued Bulletin 09-28 requesting that insurers review their procedures for notifying insureds and potential insureds of the consumer protections set forth in Bulletin No. 04-05. The NJDBI has requested that insurers provide it with copies of notices provided to insureds and potential insurers, along with an explanation of how and when the notices are distributed. Insurers must submit the notices to the NJDBI by October 15, 2009.