The Wisconsin Assembly is considering a bill that would prohibit insurers from using credit scoring information to issue or renew auto or property insurance policies.
Assembly Bill 278, authored by Rep. Gregg Underheim (R-54th), would prohibit insurers from considering information in consumers’ credit reports for purposes of issuing or renewing motor vehicle or property insurance, including renter’s and homeowner’s insurance, or setting premiums for motor vehicle or property insurance. The bill also prohibits insurers from using credit scores as a rating factor for establishing a rating plan for motor vehicle or property insurance.
Insurers use credit scores with other criteria, including years of driving experience, previous claims or losses, and a home or vehicle’s age to form a clear picture of a consumer’s risk.
Topics Auto
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