The Property Casualty Insurers Association of America (PCI) is applauding a ruling by a Michigan Circuit Court Judge to expand a ban on negative regulatory action against insurers based on the their use of credit information in insurance rating and underwriting.
The request, made by the Property Casualty Insurers Association of America (PCI), the American Insurance Association (AIA) and the National Association of Mutual Insurance Cos. (NAMIC) sought to expand an earlier injunction against Michigan’s Office of Financial and Insurance Regulation (OFIR). The previous injunction was limited to several named individual companies and two state trade associations involved in a law suit over credit scoring that will soon be heard by Michigan's Supreme Court.
“OFIR was creating a disparate regulatory environment and forcing some companies to operate at an economic disadvantage,”Ann Weber, PCI VP, regional manager and counsel, said in a statement. "We look forward to the Michigan Supreme Court’s hearing on the appeal to the Insurance Institute of Michigan et al v. Office of Financial and Insurance Services (OFIS) case. The use of credit information is more likely to help consumers secure lower insurance costs. PCI supports the ability of insurers to use this tool because it has proven to be a very accurate predictor of the risk of loss and allows insurers to provide more coverage and create financial benefits for policyholders with good credit.”
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