A bill which made technical changes to the Minnesota guaranty fund was modified to include changes to the Insurance Fair Information Reporting Act that eliminates the need for insurers to obtain up-front written authorization from policyholders or applicants before collecting a credit-based insurance score.
Prior to the change, agents had to secure written authorization from policyholders or applicants to a credit score for underwriting or rating.
Insurers must disclose to all applicants that insurance scores will be used as a factor in determining their rate, and must inform consumers if their insurance score resulted in “adverse action,” such as a higher rate. Insurers have been allowed to access credit information since 1970 under the Federal Fair Credit Reporting Act.
The regular Minnesota session ended on May 19, 2003. Gov. Pawlenty has called a special session to finish the state budget.
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