NAMIC Calls Credit Scoring 'Best Practices' Effort Unnecessary

INDIANAPOLIS (March 8, 2004)––The National Association of Mutual Insurance Companies (NAMIC) today called for cessation of an effort to create a “best practices” interpretation document on the use of insurance scores by the National Association of Insurance Commissioners (NAIC).

“Reasonable and balanced parameters on the use of insurance scores have been adopted in more than 30 states,” said Neil Alldredge, NAMIC state affairs director, “ resulting from adoption of the National Conference of Insurance Legislators (NCOIL) model law on insurance scoring. Incorporating the NCOIL model law largely ended any controversy surrounding the use of this proven, valuable tool.”

“Creation of a 'best practices' guide would undermine the law in those states that have adopted the NCOIL model,” Alldredge noted, “a model which has brought a great deal of sanity to debate on insurance scoring. NAMIC is deeply concerned that efforts of the Credit Scoring Working Group will re-kindle debate without creating any benefit whatsoever. If Insurance Commissioners seek changes to their states’ laws, they should work through the legislative process, not attempt an end-run effort at the NAIC,” Alldredge concluded.

For further information contact:
Richard Nelson at rnelson@namic.org
or (317) 875-5250

NAMIC is a full-service international trade association with more than 1,350 member companies that underwrite 41 percent ($170 billion) of the property/casualty insurance premium in the United States. NAMIC membership includes four of the seven largest property/casualty carriers, every size regional and national property/casualty insurer and hundreds of farm mutual insurance companies. NAMIC benefits member companies through government relations, public affairs, education and arbitration services, and insurance and employee benefit programs. Information about the association, its member companies and the property/casualty insurance industry can be found at NAMIC Online, www.namic.org. NAMIC: Turning Issues into Positive Results

Posted: Monday, March 08, 2004 12:00:00 AM. Modified: Tuesday, March 30, 2004 5:34:17 PM.

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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.