AIA: Credit Scoring, Privacy Top Arizona’s 2006 Legislative Agenda

Insurers in Arizona will be busy in 2006 dealing with key issues ranging from privacy and the use of red light cameras to limitations on the use of credit information in underwriting, according to the American Insurance Association (AIA).

“2006 will be a hectic year for insurance interests in Arizona,” said Janine Gibford, AIA assistant vice president, Western Region. “Ten different privacy measures have already been introduced, which attempt to prevent and prosecute identity theft and create new notification requirements for insurers in the event of a security breach. AIA will work closely with legislators to ensure that any remedies approved are consistent with the requirements in other states and that notification methods allow for flexibility.

“AIA will oppose three measures that attempt to ban or restrict the use of credit information in rating or underwriting of auto and homeowners insurance,” said Gibford. “We also will closely monitor several measures designed to regulate the use of red light cameras.

“Finally, AIA is concerned about legislation to prevent insurance employees from ‘exerting undue influence’ when a customer selects an auto body shop or glass repair facility,” said Gibford.