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January 10, 2005, Insurance
Journal
Wasting little time acting on one of his campaign promises, new Delaware
Insurance Commissioner Matt Denn announced he will support a bill being
introduced that seeks to ban the use of credit scores by insurers in
personal lines insurance rating.
State Senator Margaret Rose Henry and Denn said that legislation would
be introduced on the first day of the 2005 General Assembly. It will
prohibit the use of credit scoring by insurance companies in the fields
of automobile and homeowners insurance.
Democrat Denn's predecessor, Donna Lee Williams, had opposed the Henry
bill banning credit scores in insurance.
Denn cited studies that he said have shown that credit scoring has a
disproportionate impact on low-income persons and ethnic minorities in
affirming his position.
The legislation, already filed as Senate Bill 2, will be sponsored in
the House of Representatives by State Representative Dennis Williams.
"The American dream is about buying a home, having a car and a good
job," Sen. Henry said. "Responsible people can have a bad credit rating
for a variety of reasons and I don't think that should prevent anyone
from being able to pursue their dreams of homeownership or their ability
to have a car to go to work in. Credit scoring is an unnecessary and
unfair obstacle."
"I look forward to working with Senator Henry to see this legislation
through the General Assembly," Denn said. "The last time this
legislation was heard in the state Senate, it was opposed by the
insurance department and it failed by one vote. I expect that with a
supportive insurance commissioner, we will see a different outcome this
time around."
Denn was elected to the insurance post in November. |