Credit Scoring Bill Fades in Wisconsin
A credit scoring insurance bill in Wisconsin that made consumers happy and insurers quite displeased has simply faded away at the state capital. After lawmakers wrapped up business last Thursday, it was discovered that the auto insurance bill that would have banned credit-based insurance scoring never made it out of committee before the end of the night.
Bill Was Allowed to Fade Away Due to Prior Legislative Criticism
The assistant vice president of the Midwest region for the American Insurance Association (AIA), John Birkinbine, said recently that the auto insurance bill, though possibly beneficial to consumers, was likely put to rest because of backlash that Democrats received recently after passing a bill that increased minimum coverage requirements and raised rates.
The newspaper editorials and criticisms received from Republican minority members was a lot to bear. As a result, Democrats let this new, unpopular bill slip away without much fight.
Maryland Also Recently Avoided Credit Scoring Bill
Wisconsin is not the first state to allow a bill that would prevent credit scoring from being a factor in auto insurance rates to simply slip away. In fact, Maryland took it one step further and outright rejected the bill they had floating their state Senate.
It seems that getting credit scoring pulled from the consideration process when applying for auto insurance has been a tough road. Michigan and other states have fought to have it removed, especially when most insurers use the insurance score, which relies on the credit score.
Some believe that determining auto insurance rates based on a credit score results in unfairly increasing rates for responsible drivers, but many legislatures have yet to feel that this true.