Indianapolis – The National Association of Mutual Insurance Companies (NAMIC) says it opposes a legislative effort in Michigan to ban the use of credit-based insurance scoring. Michigan is one of many fronts where insurers are opposing such initiatives, as 48 states have taken some form of legislative or regulatory action on the use of credit-based insurance scores.

Michigan law allows credit-based insurance scoring to be used only to provide discounts to customers for their home and auto insurance, not to determine if a person can be insured by the company, or if a surcharge can be applied, says Joe Thesing, NAMIC’s director of state affairs. Furthermore, Thesing notes all Michigan insurance carriers are required by law to submit their rates to the state, which has 60 days to reject them. None of those rates, which include discounts for credit scoring, have been rejected.

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