Nebraska Bill Would Prohibit Sole-Basis Credit Scoring
February 12, 2003

A bill moving through the Nebraska legislature would prohibit insurers from denying, canceling or non-renewing an insurance policy or basing rates solely on the basis of credit information.

Legislative Bill 487 would also require insurers to disclose information about the models used in the credit-based insurance scoring process.

A spokesperson for the Alliance of American Insurers, an industry trade group, said the new restrictions were cumbersome, unnecessary and duplicative of federal law.

NCOIL Insurance Scoring Model Advances in Nebraska
February 21, 2003

The Nebraska Banking, Commerce and Insurance Committee has approved an insurance scoring bill favored by insurers while voting down a bill that would have banned the use of credit information by insurers.

Legislative Bill 487, which follows the National Conference of Insurance Legislators' (NCOIL) model act for credit-based insurance scoring, requires an insurer to notify an applicant for
insurance that credit information will be used in underwriting and rating. It requires customer notification of the primary factors that resulted in an adverse action being taken. The scoring model used must be filed with the Department of Insurance and it will be treated as a trade secret.

"The NCOIL model is positive in that it addresses many of the concerns of the producer community and does not artificially impede insurers' ability to! use this