Wisconsin Insurance Commissioner to Hold Hearing on Credit Use

Saturday, Sep 12,2009, 11:27:56 AM Click:

Sean Dilweg, Wisconsin insurance commissioner, said he will hold a hearing on the use of credit-based insurance scoring in writing personal lines insurance policies.

The hearing will be Sept. 14 at the Wisconsin State Capitol.

In a statement, Dilweg said he invited consumers, insurers, insurance agents and credit reporting agencies to testify at the hearing, which was requested by Sen. Lena Taylor, D-Milwaukee, and Rep. David Cullen, D-Madison.

"It is my hope that the hearing will result in a comprehensive and well-balanced discussion on the issues surrounding the use of consumer credit history," said Dilweg, who said he was going to assess the information presented at the hearing before taking any future action to enhance consumer protection.

At its summer meeting, the National Conference of Insurance Legislators approved an amendment to its model law on credit-based insurance scoring that would require insurers using the practice to allow leeway for customers' "extraordinary life circumstances." Property/casualty insurers supported the amendment as a fair compromise between insurer and consumer interests (BestWire, July 12, 2009).

The National Association of Insurance Commissioners, at its meeting in Minneapolis in June, did not reach an agenda item on the use of credit-based insurance scoring after additional testimony was heard (BestWire,June 16, 2009).

In 2008, the top five writers of private passenger auto in Wisconsin, based on A.M. Best state/line data, were: American Family Insurance Group, with a 25.3% market share; State Farm, with 13.8%; Progressive Insurance Group, with 9.4%; ACUITY A Mutual Insurance Co., with 4.0%; and Allstate Insurance Group, with 3.8%.

In 2008, the top five writers of homeowners multiperil in Wisconsin, based on A.M. Best state/line data, were: American Family Insurance Group, with a 24.1% market share; State Farm, with 15.9%; Allstate Insurance Co., with 4.6%, Farmers Insurance Group, with 4.1%; and ACUITY A Mutual Insurance Co., with 3.8%.