A Wisconsin bill to ban insurers' use of credit ratings toevaluate and set customer policy rates is gaining impetus,according to an aide to the measure's sponsor.

Although the bill ran out of time when it was introduced lastyear, it seems to be catching bipartisan momentum within theAssembly as the term draws to a close, said Tom Powell, aide forState Rep. Terese Berceau, D-Madison.

The legislation prohibits an insurer from issuing, renewing orplanning ratings for property and motor vehicle insurance based onan individual's credit rating.

Explaining the measure's "strong bipartisan support, Mr. Powellsaid it was originally a Republican bill and has Republican supportfrom State Sen. Carol Roessler, R-Oshkosh, and Rep. Joan Ballweg,R-Markeson, among others.

"We have a lot of sponsors signed on to the bill and, becausethe Senate has gone Democratic, the likelihood is fairly high thatit will get a hearing," said Mr. Powell.

The current law prohibits discriminating among policyholders bycharging different premiums or offering different terms ofcoverage. The exception is on the basis of classifications relativeto the degree of risk covered, according to an analysis by theLegislative Reference Bureau of Wisconsin.

But the insurance industry opposes the legislation, said EricEnglund, president of the Wisconsin Insurance Alliance. Using anindividual's credit rating is a legitimate part ofunderwriting.

It is a "sophisticated metric that's available that allowsinsurers to do a better job of the very thing people want them todo--which is to correlate the rates for the insurance policies withthe actual risk that the consumer brings," said Mr. Englund.

"The data shows that credit information is a legitimate andacceptable metric to be used in predicting claims behavior," headded.

Ms. Berceau said credit reports often have mistakes and are apoor determinant of whether someone should be insured or how muchhe or she should pay for coverage.

"A good credit history does not mean you get a favorable creditscore or favorable insurance treatment," said Ms. Berceau.

The bill is pending with the Assembly Committee on Insurance andno date for a hearing has been set.