Since January 2003, lawmakers or insurance regulators in 31 states have questioned insurers' use of loss history databases. During the same period, at least 14 states and the District of Columbia have enacted provisions dealing with use of this information.

The growing interest on the part of legislatures has made it difficult for homeowner insurance companies seeking to preserve the freedom to use such loss history information to help them make intelligent underwriting decisions, according to the Property Casualty Insurers Association of America. "Despite this intense scrutiny from legislators and regulators, insurers have been able to defeat measures that would impose outright bans on the use of loss histories," said Rey Becker, PCI's vice president of personal lines. "Public policy makers understand the predictive nature of past losses and realize that loss histories are a valuable underwriting factor."

Last year, legislation was enacted in Arizona, Texas, and Virginia, and regulatory action was taken in California and the District of Columbia. In the first half of 2004, bills have been enacted in Arizona (amending last year's enactment), Colorado, Florida, Georgia, Oklahoma, Utah, and Wyoming. At press time, bills were awaiting the governors' signatures in Louisiana and North Carolina. Regulatory action also has been taken in Arkansas and Delaware.