"As an industry, we have not done well educating agents and brokers on these issues about how its use is a benefit for consumers so they can explain it to their clients," observed Mr. Annotti.

Only a few companies, notably Progressive and Allstate, have done a good job at educating their agents on how they use credit scoring for the consumer's benefit, and more need to follow their lead, he said.

"The greatest ally is to demonstrate the use of the information," said Mr. Annotti, adding that companies have reams of studies showing that an individual who manages his or her assets well is a good risk. Proper use of credit scoring cannot be used to discriminate because it does not measure wealth or deal with geographic locations, he noted.

Three states, Washington, Idaho and Utah have enacted laws that significantly restrict the use of credit scoring, while 23 others have passed legislation that regulates credit scoring without restricting its benefits. Mr. Annotti pointed out that the numbers indicate that legislators in a number of states do understand its benefits.

The Des Plaines, Ill., based association has been critical of the states that passed the restrictive legislation. Mr. Annotti said the issue would remain a hot topic for years to come, with Maryland, Alaska and Missouri seen as the next battlegrounds.

The National Association of Insurance Commissioners Credit Scoring Working Group, during its conference this week in Reno, Nev., said it would study the subject with the intent of creating model legislation. The Kansas City, Mo.- based association expects to complete its work by the end of this year.