You are here:HomeIssuesInsurance Scoring & Underwriting Issues2004Insurance Scoring Battle Breaks Out in Missouri

Insurance Scoring Battle Breaks Out in Missouri

Late last week, Missouri Gov. Bob Holden (D) called for the Legislature to outlaw a practice that lets insurance companies dramatically boost auto and homeowner...
February 3, 2004

Late last week, Missouri Gov. Bob Holden (D) called for the Legislature to outlaw a practice that lets insurance companies dramatically boost auto and homeowner premiums even for consumers who have never filed a claim. Holden cited a study on credit based insurance scoring by the state Insurance Department released Thursday saying the practice leads to widespread discrimination against minorities, the poor and rural residents.
 
The insurance industry quickly responded with a broadside, accusing Holden of being anti-business and grasping for votes in an election year. The National Association of Mutual Insurance Companies (NAMIC), the American Insurance Association (AIA) and the Property Casualty Insurers Association (PCI) were all critical of the Missouri study.
 
Meanwhile in Tennessee, Commerce and Insurance Commissioner Paula Flowers says she wants some uses of credit scoring to be prohibited in the state. Rep. Joe Towns, D-Memphis, said he likely will pursue legislation regulating credit scoring, but he'd like to ban the practice altogether.