Maine: Credit Use Notice Bill Dies Despite Last-ditch Attempt at Session End

A last-ditch attempt to pass legislation that would have required insurers to notify all insureds whose premiums are affected by use of credit, even if it means they are getting a lower rate, was ultimately unsuccessful as the Maine legislative session ended last week.

The bill, LD-419, which had been approved by the House, had been tabled in the Senate but was revived in a surprise move the day before the end of the session. Ultimately, the bill was defeated by a strong vote in the Senate, according to Charles Soltan, counsel for the Maine Association of Insurance Companies, a NAMIC advocacy partner.

The bill would have required any insurer that "uses credit information to calculate an insurance score for underwriting and rating purposes…[to] disclose to the insured that the insured is paying either a higher or lower premium based upon the insured's insurance score."

NAMIC submitted testimony to the Joint Committee on Insurance and Financial Service opposing the bill in its original form, which would have prohibited insurers from denying, canceling, or refusing to renew "based in whole or in part on a person’s credit information."

Paul Tetrault, NAMIC’s Northeast state affairs manager, pointed out in that testimony that Maine already has statutory measures that adequately govern insurers’ use of credit information in insurance scores.

Direct questions to NAMIC State Affairs Manager Paul Tetrault.

Posted: Tuesday, June 26, 2007 12:00:00 AM. Modified: Tuesday, June 26, 2007 10:53:38 AM.

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