Delaware legislation to ban insurers' use of consumers credit history to rate them for home and auto coverage was approved by a State Senate committee yesterday.
The action came despite insurers' arguments that use of credit scores is a proven tool for underwriters and that Delaware already has laws that ensure the process does not harm the public
“We're going to continue working on this to persuade the members [of the legislature] that this is not an approach that is beneficial to the consumer,” promised Jeffrey Brewer, a spokesperson for the Property Casualty Insurers Association of America (PCI)
The six-member committee of four Democrats and two Republicans listed a 5-0 vote for the measure after deliberations that followed an hour long hearing where the measure drew support from consumer groups and opposition from the insurance industry.
Richard Stokes, regional manager and counsel for PCI, noted that last year a compromise measure was worked out that prohibited credit scoring only for policy renewals, but the session ended before it could be voted on.
“We're hopeful the compromise version will still be what ultimately will be discussed” by the legislature, he said.
The sponsor of the bill (SB 31) is Sen. Margaret Rose Henry, D-Wilmington.
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