Calif. Assembly Committee Says No to Credit Scoring Ban

The California Assembly Insurance Committee voted down SB 603, authored by Senator Deborah Ortiz (D-Sacramento), which would have banned insurers’ use of credit-based information.

“We are pleased the committee did not approve this extreme measure,” said Janine Gibford, AIA assistant vice president, Western Region. “California has considered measures to ban the use of credit-based information by insurers several times. The industry has consistently supported an alternative approach based on the model law designed by the National Conference of Insurance Legislators. The enhanced NCOIL language would provide strong consumer protections while ensuring that consumers pay appropriate rates based on their likelihood of risk.”

Several homeowner bills were also amended to deal with concerns expressed by AIA. SB 2, authored by Senator Jackie Speier (D-San Francisco), will now require insurers to train their broker-agents on how to advise consumers about the available limits of coverage for their structures. SB 518, authored by Senator Christine Kehoe (D-San Diego), will require insurers to extend the time frame in which they provide additional living expenses to policyholders after a declared state of emergency for up to two years.

“Both Senators Speier and Kehoe worked closely with insurers to on these measures, which were designed to address concerns raised by the victims of the 2003 wildfires,” said Gibford. “We thank them and appreciate their willingness to listen to our concerns and for working with us to find common ground.”

Topics California