Virginia: Senate Committee Introduces Bill Prohibiting Rate Setting Based on Credit Information
Republican Sen. Mark Obeshain yesterday introduced SB1430, Motor Vehicle Insurance; Premiums Based on Credit Information. The bill was referred to the Commerce and Labor Committee.
The bill prohibits insurers from setting rates for motor vehicle insurance on the basis of a person’s credit history or credit score, and states in part: “Nothing in this section prohibits any insurer from setting rates in accordance with relevant actuarial data, except that insurers shall not set rates or make pricing decisions based on a person's credit history, lack of credit history, or credit score.”
NAMIC will be working with industry partners and member companies in the coming days to educate members of the committee about this vital underwriting tool and why banning it would increase insurance rates for many of their constituents.
Direct questions to NAMIC State Affairs Manager Erin Collins.