Insurers Could Use Credit Scores in Alaska Policy Renewals

Insurers would be able to consider someone’s credit score when renewing personal insurance policies under a bill in the Alaska Senate.

SB55, from the Senate Labor and Committee, is scheduled for its first hearing Tuesday. Currently, insurers can consider credit history when initially issuing a policy for things like car, renter’s or homeowner’s insurance. According to the sponsor statement, if consumers want their credit history used as part of a renewal, they must request that.

A number of insurance companies support the measure. They say the current law results in higher premium rates and market disruptions, with consumers forced to switch carriers for rates that better reflect their risk.

The Alaska Democratic party says the bill would let companies charge Alaskans more for the same insurance based on credit score.