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Kansas Passes Credit Scoring Bill

Kansas Governor Kathleen Sebelius has until April 17, 2003 to sign a credit scoring bill into law. The Kansas House approved the bill last week...
April 16, 2003

Kansas Governor Kathleen Sebelius has until April 17, 2003 to sign a credit scoring bill into law. The Kansas House approved the bill last week by a 100-to-24 vote. The State Senate approved it 38 to 1. The bill includes a provision called the Kansas Insurance Act that would allow insurers to keep using credit-based scores known as insurance scoring. The bill is based on model legislation that the National Conference of Insurance Legislators (NCOIL) approved in November. Included in the bill's provisions:

  • An insurer can't decide whether to sell a personal policy and what premium to charge based only on an insured party's credit history.
  • must notify consumers when credit information is used in calculating their premiums.
  • Insurers must file their scoring formulas with the state's insurance department.

The bill requires the Kansas DOI to complete a report on insurance scoring by January 2005.