A last-minute effort to prohibit the use of credit-based insurance scores in auto insurance underwriting and rating was rejected by the Pennsylvania Senate.
National Association of Independent Insurers (NAII) Counsel Ann Weber commended the Senate for recognizing that insurance scores accurately predict future insurance claims and thus help insurers base their rates on actual risks involved, which is fairer for everyone.
State Sen. Gerald LaValle (D-Rochester) attempted to add the insurance score ban as an amendment to a bill of automobile titling, House Bill 152. The Senate rejected the move.
In other legislative action, House Bill 1954, which initially would have enabled insurers to nonrenew an insurance policy on which two claims were filed within a three-year period died when its sponsor, Rep. Michael McGeehan (D-Philadelphia), asked the Senate Insurance Committee to stop further action on the bill. His request came after opposition arose in the Senate. Although the bill died this year, insurers feel they were successful in bringing to public light the need for some type of allowance for nonrenewals based on claims.
The Pennsylvania Legislature will end its 2002 session later this month.
Topics Politics Pennsylvania
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