A House bill limiting insurers from using credit-based insurance
scores as the sole criterion in rating and underwriting passed the Georgia House Insurance Subcommittee this week.
“H.B. 215 is substantially similar to the NCOIL credit bill, which recognizes the value of insurance scoring as a valuable rating and underwriting tool,” James Taylor, southeastern regional manager for the National Association of Independent Insurers (NAII), said. “It is a responsible bill that is consistent with Georgia laws and regulations.”
The bill prohibits insurers from using an insurance score calculated using income, gender, race, address, zip code, ethnic group, religion, marital status, or consumer nationality as an underwriting factor. It also prohibits insurers from denying, canceling, or nonrenewing a policy solely on the basis of credit information; basing renewal rates solely on credit information; taking adverse action against a consumer solely because such consumer does not have a credit card account; and considering an absence of credit information or an
inability to calculate an insurance score in underwriting or rating.
Taylor added the bill is expected to pass the full insurance committee and go to the House floor in the near future.
Was this article valuable?
Here are more articles you may enjoy.