Property-casualty groups have voiced strong opposition to legislation introduced in the U.S. House of Representatives to limit the use of credit information by insurers in underwriting and rate-setting.
"Contrary to what the authors of this legislation assert, this bill is not in the best interests of consumers," said Neill Alldredge, vice president for state and regulatory affairs at the National Association of Mutual Insurance Companies. "Study after study has shown credit-based insurance scores are an accurate predictor of future claims that enable insurers to offer coverage to more consumers at a fair price."
The legislation--H.R. 5633, The Non-Discriminatory Use of Consumer Reports and Consumer Information Act of 2008--was introduced by Rep. Luis Gutierrez, D-Ill. The bill has two powerful co-sponsors--House Financial Services Chair Barney Frank, D-Mass., and Rep. Mel Watt., D-N.C., who chairs the Financial Services Subcommittee on Oversight and Investigations.
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