Updates on the Use of Credit Reports and Credit Scoring by Florida Insurers

In a previous administrative proceeding, various industry trade associations, including the Property Casualty Insurers Association of America, challenged a second proposed Rule promulgated by the Florida Office of Insurance Regulation (“OIR”) related to the use of credit reports and credit scoring by Florida insurers.

In a stipulation filed in the administrative proceeding on September 26, 2008, the OIR agreed that the current Rule is still under development and the Florida Financial Services Commission has no intention to adopt the proposed Rule in its current form.

Because further Rule development will be necessary, the OIR will follow the standard procedures in Rule development related to prior notice and opportunity to review and comment on the next version of the proposed Rule.

Colodny Fass will continue to monitor this issue and report on further proceedings as necessary.

In an unrelated matter, the National Association of Insurance Commissioners (“NAIC”) Market Conduct and Consumer Affairs (D) Committee recently considered a draft paper entitled “Review of the Use of Credit-Based Insurance Scoring by Insurers” at the 2008 NAIC Fall Meeting. No action was taken and the Committee requested that comments be submitted by October 24, 2008. To view a copy of the draft, click here.

Should you have any questions or comments, please do not hesitate to contact Colodny Fass.

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