The Texas Department of Insurance has set a hearing for Jan. 7 to
consider restrictions on the use of credit-based insurance scoring.
TDI adopted initial rules last November that, along with statutory
provisions enacted last year in Senate Bill 14, are among the strongest
in the country regulating the use of credit scoring.
They require companies using credit information to provide a
disclosure statement to consumers applying for insurance application
notifying them if credit scoring will be used in rate setting and
describing certain rights and protections set forth in the law.
The proposed rule would set further limitations and establish
limits on variations in rates.
The proposal is opposed by the Texas Coalition for Affordable
Insurance, made up of insurance providers and trade organizations that
says its aim is to improve insurance affordability and accessibility in
Texas.
Limiting credit-based scoring, it says, would endanger the
discounts good risks now receive.
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