At least six states will consider legislation to reforminsurance rate setting processes this year, according to alegislative analysis by the National Association of MutualInsurance Companies.

Neil Alldredge, NAMIC state advocacy director, said thatConnecticut, Hawaii, Indiana, Iowa, Massachusetts and New Yorklegislators will have such measures before them proposing what hetermed more "competitive" rate setting practices.

The proposals, Mr. Alldredge said, will benefit consumers byremoving "restrictive" rating practices, which will encourage morecompetition.

He said in Michigan, NAMIC will oppose what it considers"anti-competitive" legislation proposed by Gov. JenniferGranholm.

Her administration's bill would impose a 20 percent raterollback for auto and homeowners insurance rates and eliminate aprovision in existing law that would eliminate the requirement thata lack of competition must exist for rates to be deemedexcessive.

"The governor's actions represent a step backward and will havethe unintended consequence of making the Michigan market lesscompetitive than it is today," Mr. Alldredge said.

Credit-based insurance scoring and security breach legislationwill also be before state lawmakers this year.

Mr. Alldredge predicted that as many as 40 states may introduceinsurance scoring bills this year.

"While a few bills may continue efforts to prohibit insurancescoring outright, most bills are likely to seek restrictions whereindividuals may be involved in 'extraordinary life circumstances,'"he said.

Last year, 21 states enacted security breach notification laws,Alldredge noted. And more states will likely take up the issue thisyear.

"The more states that enact such legislation, the more they arelikely to enact provisions different from each other," Mr.Alldredge said. "This is problematic for businesses doing businessin multiple states."