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NAMIC Action Gleans Member Shelter in Michigan Insurance Scoring Case

In an order dated Sept. 25, 2009, Judge James Fisher granted intervener status to NAMIC, PCI, and AIA as plaintiffs to the battle on credit-based insurance scoring. In April, Fisher ruled that the injunction preventing the department from implementing its proposed ban on insurance scoring only applied to members of the two state trade associations that brought the original action. The Office of Financial and Insurance Regulation then started denying rate filings that included credit-based insurance scoring of those companies that were not members of either trade. The national trades brought this action to include the rest of the industry in the ruling.

Confirming the extension of his injunction issued earlier this year, Fisher ordered that the preclusion of rejecting rate filings based on the use of credit be extended to the three trades’ members. Additionally, the order voids the rate rejections that OFIR has issued to the trades’ members since the April 10 injunction.

Although this is a positive development in Michigan, the battle over credit-based insurance scoring isn’t over. The Supreme Court awaits arguments on Oct. 7, and NAMIC expects the court's decision sometime in December. NAMIC and the other national trades have filed an amicus in the Supreme Court proceedings.

Direct questions to NAMIC's State Affairs Manager Erin Collins.

Posted: Monday, September 28, 2009 12:00:00 AM. Modified: Tuesday, September 29, 2009 8:58:44 AM.

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