Notice of Proposed Rulemaking for Rule number 690-125.005: Use of credit reports and credit scores
Aug 9, 2007
Use of credit reports and credit scores
The Florida Financial Services Commission ("FSC"), on behalf of the OIR, has issued a Notice of Proposed Rulemaking for Rule number 690-125.005, relating to the use of credit reports and credit scores byinsurers, and Rule number 69O-125.006 relating to unfair discrimination in the use of credit reports or credit scores by insurers.
If requested in writing within 21 days of the Notice date, a Hearing on these Proposed Rules will be held at:
TIME AND DATE: 9:30 a.m., August 9, 2007.
PLACE: 116 Larson Building, 200 East Gaines Street, Tallahassee, Florida.
In addition to implementing the provisions of section 626.9741, F.S. created by Senate Bill 40-A, Proposed Rule 69O-125.005 requires the review and approval of an insurer’s use of credit reports and credit scores, requires submission of specified information and verification that the models, methods, programs and other processes used by an insurer are accurate predictors of risk. This Proposed Rule also ensures compliance with the provisions of section 626.9741, F.S.
Proposed Rule 69O-125.006 provides standards ensuring that insurance rates or premiums associated with the use of a credit report or score are not unfairly discriminatory. This Proposed Rule specifies the statistical requirements and standards for the testing of credit scoring methodologies to assure they do not have a disproportionate impact on the classifications specified in section 626.9741(8)(c), F.S.
To read the full text of the notice and Proposed Rules, click here.
To read more about this issue, click on the news headlines below:
Insurers Winning Battles Over Use of Credit Scoring in Most States
Supreme Court Backs Insurers In Credit Scoring Case
Readers Split On Ethics Of Using Credit Scores
New Law Limiting Insurers’ Use Of Credit Reports Signed By Governor