The Delaware Senate unanimously approved legislation today that allows insurance companies to continue using credit-based insurance scores while putting in place additional consumer safeguards.

As originally introduced, Senate Bill 31 would have banned insurers from using credit information to underwrite auto and homeowner policies.

However, lawmakers reached a compromise that will allow insurers to use credit information for writing new business but not on policy renewals.

Richard Stokes, regional manager and counsel for the Property Casualty Insurers Association of America, noted the state already has comprehensive regulation governing how insurers use credit information.

“These regulations include some of the most stringent consumer protections in the nation to ensure policyholders are treated fairly,” he said. “This legislation would add to these restrictions.”

The bill now moves to the Republican-controlled House where Mr. Stokes said the bill has support on the committee dealing with insurance issues.

He does not expect immediate action there, as the chamber will soon shut down for a couple of weeks.

After that, the bill goes to the desk of Democratic Gov. Ruth Miner.

Special Reports /

Delaware Restricts Credit Scoring

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