OKLAHOMA LEGISLATURE APPROVES INSURANCE SCORING BILL

Oklahoma City, April 17 - The Oklahoma House approved a bill earlier this week regarding insurance scoring that is based on model legislation developed by the National Conference of Insurance Legislators (NCOIL), the American Insurance Association (AIA) said today. "While SB 539 does limit the use of insurance scores by insurers, it also provides important consumer protections and affirms the right of insurers to use this accurate and cost-effective underwriting tool," said John Marlow, AIA assistant vice president, southwest region. "The use of insurance scores, along with other more traditional underwriting data, greatly improves insurers' ability to predict future claims. This allows insurers to price their products more efficiently, accurately and consistently."

SB 539 is based on the NCOIL model legislation, a consensus approach to addressing insurers' use of insurance scores that was approved by that body last November. AIA was successful in defeating attempts to unreasonably impair and/or restrict the ability of insurers to use this important underwriting and rating tool. Major provisions of the bill include the following:

Prohibits an insurer from denying, canceling, nonrenewing or basing renewal rates solely on the basis of credit information, without consideration of any other applicable underwriting factor;
Requires an insurer to disclose to an applicant for insurance that credit information will be used in underwriting and rating; Requires an insurer to notify a consumer in the event of an adverse
action based on credit information, including up to four factors that were the primary reasons for the adverse action;  Prohibits insurers from using certain information in scoring models, including income, gender, address, zip code, ethnic group, religion, marital status, or nationality of the consumer as a factor; and Limits the manner in which an insurer may handle a consumer who lacks
credit information or for whom no score can be generated.

SB 539 was passed unanimously by both houses of the legislature - 100-0 in the House of Representatives and 44-0 in the Senate. The bill was sent to Gov. Brad Henry (D) for his signature on April 16, and he has until April 23 to sign it. www.aiadc.org
KANSAS ENACTS FAIR INSURANCE CREDIT SCORING LAW, ALLIANCE SAYS  Downers Grove, IL, April 18 - The Alliance of American Insurers is pleased with yesterday's enactment of a Kansas law that will continue to allow insurers to use consumer credit histories in underwriting and rating policies. The law requires insurers to tell the Kansas Insurance Department how they use consumers' personal credit histories to determine insurance rates or whether to cancel policies. Many insurers now use credit histories to decide whether to issue consumers insurance
and what to charge. "This law is a fair compromise for both consumers and insurers," said Lynn Knauf, a policy manager in the property/casualty department of the Alliance. "We are pleased that
insurers will still be able to use credit scoring - an accurate and non-discriminatory underwriting and rating tool - since it is clearly in the best interests of everyone to allow insurers to accurately evaluate and price their business. This is the best way for consumers to receive lower rates based on their favorable credit records."Formerly HB 2071, the new law is substantially based on the National Conference of Insurance Legislators' (NCOIL) Model Credit Scoring Act, but includes a
requirement that the insurance commissioner complete a study on the effects of credit scoring in insurance. The law becomes effective Jan. 1, 2004. www.allianceai.org <http://www.allianceai.org/>  

 

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OKLAHOMA LEGISLATURE APPROVES INSURANCE SCORING BILL

Oklahoma City, April 17 - The Oklahoma House approved a bill earlier this week regarding insurance scoring that is based on model legislation developed by the National Conference of Insurance Legislators (NCOIL), the American Insurance Association (AIA) said today. "While SB 539 does limit the use of insurance scores by insurers, it also provides important consumer protections and affirms the right of insurers to use this accurate and cost-effective underwriting tool," said John Marlow, AIA assistant vice president, southwest region. "The use of insurance scores, along with other more traditional underwriting data, greatly improves insurers' ability to predict future claims. This allows insurers to price their products more efficiently, accurately and consistently."

SB 539 is based on the NCOIL model legislation, a consensus approach to addressing insurers' use of insurance scores that was approved by that body last November. AIA was successful in defeating attempts to unreasonably impair and/or restrict the ability of insurers to use this important underwriting and rating tool. Major provisions of the bill include the following:

Prohibits an insurer from denying, canceling, nonrenewing or basing renewal rates solely on the basis of credit information, without consideration of any other applicable underwriting factor;

Requires an insurer to disclose to an applicant for insurance that credit information will be used in underwriting and rating;

Requires an insurer to notify a consumer in the event of an adverse action based on credit information, including up to four factors that were the primary reasons for the adverse action;

Prohibits insurers from using certain information in scoring models, including income, gender, address, zip code, ethnic group, religion, marital status, or nationality of the consumer as a factor; and

Limits the manner in which an insurer may handle a consumer who lacks credit information or for whom no score can be generated.

SB 539 was passed unanimously by both houses of the legislature - 100-0 in the House of Representatives and 44-0 in the Senate. The bill was sent to Gov. Brad Henry (D) for his signature on April 16, and he has until April 23 to sign it. www.aiadc.org

KANSAS ENACTS FAIR INSURANCE CREDIT SCORING LAW, ALLIANCE SAYS

Downers Grove, IL, April 18 - The Alliance of American Insurers is pleased with yesterday's enactment of a Kansas law that will continue to allow insurers to use consumer credit histories in underwriting and rating policies. The law requires insurers to tell the Kansas Insurance Department how they use consumers' personal credit histories to determine insurance rates or whether to cancel policies. Many insurers now use credit histories to decide whether to issue consumers insurance and what to charge. "This law is a fair compromise for both consumers and insurers," said Lynn Knauf, a policy manager in the property/casualty department of the Alliance. "We are pleased that insurers will still be able to use credit scoring - an accurate and non-discriminatory underwriting and rating tool - since it is clearly in the best interests of everyone to allow insurers to accurately evaluate and price their business. This is the best way for consumers to receive lower rates based on their favorable credit records."Formerly HB 2071, the new law is substantially based on the National Conference of Insurance Legislators' (NCOIL) Model Credit Scoring Act, but includes a requirement that the insurance commissioner complete a study on the effects of credit scoring in insurance. The law becomes effective Jan. 1, 2004. www.allianceai.org  

GEORGIA CREDIT SCORING BILL PASSES SENATE, GOES TO GOVERNOR

Atlanta, April 18 - The Georgia Senate has unanimously approved legislation allowing insurers to use credit-based insurance scores in underwriting and rating homeowners and auto insurance coverage, said the American Insurance Association (AIA). The bill now goes to Gov. Sonny Perdue for his signature. H.B. 215, which passed the Senate by a vote of 47-0, reflects the consensus view of Georgia agents and carriers regarding the use of insurance scores. The legislation is based on the NCOIL model bill, which was approved by that body in November 2002. H.B. 215 passed the House of Representatives on March 24 by a vote of 166-4. Assuming the legislation is signed by Gov. Perdue, its effective date will be July 1, 2003. 

Susan  Winchester, Rep. from Chickasha, Vice Chair of Ins. Committee, phone 4055577333, email winchestersu@lsb.state.ok.us

HB 1751 is the new number...they combined several bills into this one.

You can view all the bills a www.lsb.state.ok.us/house/Members

There's a listing of the reps, senators and all the bills before then, the status etc.  Neat site

Oklahoma House Approves Credit Scoring Bill

March 4, 2003

The Oklahoma House recently approved a bill prohibiting insurers from using credit information as the sole basis for denial of homeowners or auto insurance coverage, according to the American Insurance Association (AIA).

"While AIA believes the use of credit information in insurance transactions is already sufficiently regulated by the federal Fair Credit Reporting Act and existing state rating laws," said John Marlow, AIA assistant vice president, southwest region, "the bill does a good job of protecting consumers and addressing agent concerns while reinforcing the right of insurers to use this accurate and cost-effective underwriting tool."

House Bill 1751, sponsored by Rep. Susan Winchester (R), passed the House by a vote of 99-1. The measure was then referred to the Senate, where it is sponsored by Sen. Glenn Coffee (R). The bill states that any insurer doing business in Oklahoma and using credit information to underwrite or rate risks could not: deny, cancel or refuse to renew a personal insurance policy "solely on the basis of credit information, without consideration of any other applicable underwriting factor" independent of the consumer's credit rating; base renewal rates for personal insurance exclusively upon a customer's credit rating; rely on an insurance score that is calculated using income, gender, address, zip code, ethnic group, religion, marital status, nationality, occupation, or disabilities and physical handicaps of the consumer, as a factor in its decision whether to extend or renew an insurance policy; or take an adverse action against a consumer just because he or she "does not have existing credit accounts, without consideration of any other applicable factor independent of credit information."