The National Conference of Insurance Legislators has added a drafting note to their credit scoring model law allowing insurers to allow for customers' “extraordinary life circumstances” when using credit records to underwrite and rate personal lines policies.
State lawmakers approved the addition to the model law at the group's annual spring meeting last week in Fort Lauderdale, Fla.
NCOIL claims that more than half of the states have adopted either the NCOIL model or a provision very similar to it to quell some of the controversy that has resulted from the widespread use of credit scores by personal lines carriers in underwriting and rating policies.
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