Measure defeated by 5-2 vote; House bill awaits consideration
INDIANAPOLIS (Jan. 26, 2005)––A Colorado Senate committee has rejected a bill to ban credit-based insurance scoring. The National Association of Mutual Insurance Companies (NAMIC) was part of a coalition that opposed the bill that was defeated in the Senate Business, Labor and Technology Committee by a 5-2 vote on Tuesday.
Credit-based insurance scoring is “reasonable, equitable and beneficial to consumers,” stated NAMIC Western Region State Affairs Manager Christian Rataj in written testimony.
The committee vote came during hearings held on Senate Bill 05-005, Concerning a Prohibition Against the Use of Credit-Based Insurance Scoring for the Purpose of Insurance Underwriting.
“Regulating the use and application of credit scoring is a reasonable approach to safeguard consumers,” stated Rataj, testifying in opposition to the bill which would have banned the use of the underwriting tool.
NAMIC will also work to defeat companion legislation introduced in the state House of Representatives.