The debate on credit-based insurance scoring in Michigan will now shift from the legislature to a series of public hearings being held in June and July by Office of Financial and Insurance Services (OFIS).
The Michigan House Insurance and Financial Services Committee has postponed further consideration of House Bill 5882, which prohibits an insurer from establishing or maintaining a premium discount plan based on credit information. The National Association of Independent Insurers (NAII) submitted testimony for the committee hearing held Tuesday, May 28. Following some discussion, action on the bill was deferred until after the insurance commissioner’s meetings.
“Dispelling misconceptions about insurance scoring and highlighting consumer benefits will be the insurance industry’s primary objectives during these public hearings,” Laura Kotelman, counsel for the National Association of Independent Insurers (NAII), remarked. “NAII believes that insurance scores are a valid predictor of future losses and are one of many tools that insurers use to make sure that policyholders pay premiums that accurately reflect their risk.”
More than half of the states considered insurance scoring bills and the issue was also discussed at National Association of Insurance Commissioners meetings this year. Legislative attempts to ban insurance scoring have been defeated. While seven states have passed legislation this year, the most severe restrictions have generally been removed. Bills in 12 states have died.
Topics Michigan
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