Illinois: House Committee Hears Testimony on Credit-based Insurance Scoring

The Illinois House Insurance Committee convened an informational hearing last Wednesday on insurance-based credit scoring. Mark Johnston, NAMIC's Midwest state affairs manager, attended the meeting.

Lt. Governor Pat Quinn, Division of Insurance Director Michael McRaith, and an insurance agent from southwestern Illinois criticized the use of credit-based insurance scoring in their testimony.

In response, an industry panel, which included Charles Neeson from NAMIC member Westfield Insurance, explained to the committee the pro-insurance consumer aspects of credit-based insurance scoring, including that credit scoring benefits most consumers. The panel also pointed out that independent studies, such as the one conducted by the Federal Trade Commission, support the value of credit scoring.

“It is easy for some who are opposed to insurance-based credit scoring to deploy sound-bites to make their case,” said Mark Johnston, NAMIC’s Midwest state affairs manager. “Our partners at the Illinois Insurance Association and the member companies in Illinois have done a magnificent job of educating the public and policymakers, but the work never stops. As a result of this hearing, we are focusing on the key concerns of the legislators and will address them thoroughly.”

The committee took no action and recessed. It is expected that it will reconvene and look closer at the FTC study and the impact of proposed federal legislation on the issue.

Direct questions to NAMIC State Affairs Manager Mark Johnston.

Posted: Tuesday, April 22, 2008 12:00:00 AM. Modified: Tuesday, April 22, 2008 4:32:57 PM.

Legislative and Regulatory Information Service

(317) 875-5250 - Indianapolis | (202) 628-1558 - Washington, D.C.

Contact NAMIC | Press | Advertise | Sponsor

We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.