OIR To Hold Public Hearing on Insurer Use of Credit Reports and Scores; Five National Insurance Companies Subpoenaed
Feb 17, 2009
The Florida Office of Insurance Regulation (“OIR”) will hold a hearing on Wednesday, February 18, 2009 to take public testimony regarding the use of credit scoring, credit history and credit models by insurers in the underwriting and rate-setting process in relation to Rule 69O-125.005. To view the hearing notice, click here.
Additional information is sought regarding the adverse impacts of credit scoring on individuals based on race, color, religion, marital status, age, gender, income, national origin, or place of residence, as well as testimony regarding proposed Rules that regulate the manner in which credit scoring models are approved.
In its subpoenas to five national insurance companies – Allstate, GEICO, Nationwide, Progressive and State Farm – the OIR has requested that corporate representatives of each company who are most knowledgeable of the above issues attend the public hearing and be prepared to testify on behalf of their respective companies. To view the subpoena, click here.
Date: Wednesday, February 18, 2009
Time: 9:00 a.m.
Place: Cabinet Meeting Room, Lower Level, The Capitol, Tallahassee, Florida
A member of Colodny Fass will attend the hearing and provide a report on the proceedings.
A press release from the OIR with further information on the hearing is reprinted below.
Should you have any questions or comments, please do not hesitate to contact Colodny Fass.
OIR Media Advisory
WHAT: The Florida Office of Insurance Regulation will hold a public hearing about the use of credit scoring, credit history and credit models by insurers in the underwriting and setting of rates charged to consumers.
Five insurance companies – Allstate, GEICO, Nationwide, Progressive and State Farm – were sent subpoenas requesting that corporate representatives of each company who are most knowledgeable of the above issues attend the public hearing and be prepared to testify on behalf of their respective companies.
WHEN: Wednesday, Feb. 18 at 9 a.m.
WHERE: Cabinet Meeting Room, The Capitol, 400 South Monroe Street, Tallahassee, FL 32399
DETAILS: Specific issues subject to testimony include:
- The use of credit scoring models and credit information in underwriting and determination of rates.
- Response to federal and state studies that have determined that the use of credit scores and models have a disparate impact on certain classes of people.
- Actions you have taken to address these concerns.
- Positive and negative effects that credit scoring has had on the consumer.
- Efforts you have taken to ameliorate or reduce discrimination based on income or race.
- Detailed explanation of how credit scoring is used by you.
- Impacts on you if the use of credit scoring or credit information were prohibited.
Documents and records that are the subject of the subpoenas are to be produced on or before the date of the hearing.
To unsubscribe from this newsletter, please send an e-mail to ccochran@cftlaw.com