Washington — The National Association of Mutual Insurance Companies (NAMIC) warned of potentially higher insurance rates for Connecticut consumers if the state adopts a ban on the use of credit-based insurance scoring to underwrite motor vehicle insurance premiums. The Legislature is considering a measure to forbid the use of credit ratings among auto insurers.
“By prohibiting insurers’ use of credit-based insurance scores in the pricing of auto insurance, HB-5151 would hamper insurers’ ability to utilize a valid predictive tool to assess risk and price it appropriately,” said Paul Tetrault, NAMIC’s Northeast state affairs manager. “It would interfere with the efficient functioning of the insurance market, leading to cross-subsidization and higher prices for insureds with good credit histories.”
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