Relating to the use of credit scoring in the underwriting and rating of certain insurance policies.
Impact
This bill represents a significant shift in the regulatory landscape concerning insurance underwriting, potentially influencing how insurers assess risk and set premiums. By eliminating credit scoring as a factor in insurance assessments, the bill seeks to protect consumers, particularly those who may be unfairly penalized due to their credit histories. This change could lead to more equitable insurance rates for demographics such as the elderly, young adults, and individuals with limited or no credit history, who often face higher premiums under traditional scoring systems.
Summary
House Bill 127 aims to regulate the use of credit scoring in the underwriting and rating of certain insurance policies. The bill prohibits insurers from using credit scores for any policies issued or renewed after January 1, 2018, essentially suspending credit scoring for insurance purposes. The legislation includes provisions for the establishment of a committee charged with examining the implications of credit scoring in insurance, assessing whether it should continue to influence underwriting practices, and exploring potential improvements in its application.
Contention
As discussions surrounding HB 127 unfolded, notable points of contention arose regarding the balance between consumer protection and the operational realities of the insurance industry. Proponents of the bill assert that reliance on credit scoring perpetuates discrimination and unfair pricing, while opponents within the insurance sector argue that removing this assessment tool could lead to increased risks and higher premiums for all consumers. The debate highlights the tension between ensuring fair treatment for policyholders and the need for insurers to effectively manage risk and maintain solvency.
Relating to consideration by insurers of certain prohibited criteria for ratemaking and coverage decisions and the use of disparate impact analysis regarding certain insurance practices.
Relating to the authorization, licensing, and regulation of casino gaming and sports wagering in this state, to the creation, powers, and duties of the Texas Gaming Commission, to the support of the horse racing industry and reform of horse racing and greyhound racing, and to other provisions related to gambling; imposing and authorizing administrative and civil penalties; imposing taxes; imposing and authorizing fees; requiring occupational licenses; creating criminal offenses.
Relating to measures to ensure the safety and welfare of the border region of this state, including protection from ongoing criminal activity and public health threats and the establishment of the Border Protection Unit; creating a criminal offense; creating a civil penalty.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Campaign finance: contributions and expenditures; provision related to officeholders raising funds when facing a recall; modify, and require candidate to establish a separate account used for recall purposes. Amends secs. 3, 11, 12, 21, 24 & 52 of 1976 PA 388 (MCL 169.203 et seq.) & adds sec. 21b.
Campaign finance: contributions and expenditures; funds donated to a candidate for recall efforts; require candidate to establish a separate account used for recall purposes. Amends secs. 3, 11, 12, 21, 24 & 52 of 1976 PA 388 (MCL 169.203 et seq.) & adds sec. 21b.
A concurrent resolution recognizing wild rice as sacred and central to the culture and health of Indigenous Peoples in Minnesota and critical to the health and identity of all Minnesota citizens and ecosystems and establishing a commitment to passing legislation to protect wild rice and the freshwater resources upon which it depends.