The Mississippi Department of Insurance has issued a proposed regulation dealing with insurers’ use of credit scoring in insurance
rating and underwriting and is seeking input at a hearing scheduled for Sept. 9 at the state capitol.
“The proposed regulation contains many aspects of the model law developed by the National Coalition of Insurance Legislators (NCOIL),” said James Taylor, southeastern regional manager for the National Association of Independent Insurers (NAII). “Although it isn’t perfect, we believe in its current form the Mississippi regulation will address the most important concerns associated with the use of credit scoring and we appreciate the opportunity for insurers to present their input on the matter.”
Proposed Regulation 2003-1, entitled “Use of Credit Information For
Determining Rates and Eligibility For Personal Insurance,” sets forth
restrictions and requirements for personal lines insurers using credit information in underwriting and rating.
Among its provisions, the proposed regulation prohibits insurers from denying or non-renewing coverage based solely on a lack of credit history (“no-hit”) or incomplete credit history (“thin file”) if the insurer has received accurate and complete information from the applicant. The regulation also prohibits insurers from relying solely on credit history when canceling or non-renewing a policy.
The hearing on the proposed regulation is scheduled at 9:30 a.m. in the Old Supreme Court Chamber, Room 216 in the Mississippi State Capitol in Jackson.
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