Reacting to the NCOIL vote, the National Association of Independent Insurers in Des Plaines, Ill. said it was pleased because the model, though "not perfect" has consumer protections, while "at the same time preserving companies ability to use this important underwriting and rating tool."

A statement from Illinois State Rep. Timothy Osmond, R-Antioch, who sponsored the measure, said it will allow states to establish uniformity in the way insurers use credit information to determine eligibility for insurance coverage. It will also regulate how carriers use the information to make rating and renewal decisions.

He called the bill an opportunity for states to protect consumers and support a free market.

Among the points in the model is a requirement that insurers re-underwrite and re-rate insureds whose credit reports are corrected.

It requires insurers to give consumers notice that credit information will be used in underwriting and rating and let them know if their credit rating affects their application adversely.

Insurers would have to let consumers know of up to four factors that are the primary reason for an adverse action.

Insurance agents and brokers would be indemnified if they obtained credit information and/or insurance scores according to an insurer's procedures and according to applicable law and regulation.

The model calls for restricting a consumer reporting agency's ability to provide or sell information submitted in conjunction with an insurance inquiry.

Scoring models would be considered trade secret and would be filed with the state's insurance regulator.

The separate action on tort reform drew the applause of the Alliance of American Insurers of Downers Grove, Ill. The group said the language was part of its class action reform initiative.

John Lobert, Alliance senior vice president state government affairs, said the model would correct abuses in the prosecution of class action lawsuits against insurers and agents.

The bill would provide an insurer with a rebuttable presumption that it was not liable because an alleged harmful practice had implicit or explicit approval from the proper regulatory authority, he noted. He said it should help to reform a legal system that permits huge verdicts from frivolous lawsuits.

Tabling discussion of auto crash parts, NCOIL decided to delay consideration on legislation to set auto crash repair parts requirements until 2005.

The parts issue has been a prickly topic for insurers since 1999 when a $1.2 billion judgement was returned against State Farm for having its insureds' vehicles repaired with crash parts that were not manufactured by the vehicle's maker.

That case sparked a rash of other lawsuits and drew legislators interest as well.

Florida State Sen. Steve Geller, D-Hallandale, who served on the subcommittee that grappled with the issue said "there was simply no consensus" for a model. The postponement, he said, means "essentially we're starting over."

Mr. Geller said one measure that had been put forward would have permitted the use of generic, non-original equipment maker, aftermarket parts and given primary responsibility for their quality to the manufacturer.

Mr. Geller said, "My attitude is the insurer at all times should be responsible. Why should you not have recourse?"

Legislators, he said "all felt insurers should have responsibility." Consumers, he said should have protection against a situation where liability could rest with a bankrupt manufacturer who was located overseas.

The proposals that were discussed had also included some provisions for certifying parts and setting quality standards, Mr. Geller said.

Language that was discussed for parts legislation, met with dissatisfaction from insurers, according to the NAII, which said that along with other industry trade groups, it had criticized eight amendments in one draft an promised to fight the measure in any statehouse where it was introduced.

The Certified Automotive Parts Association in Washington, said that further consideration of the issue would protect consumers from "poor quality parts and the car company parts monopoly."