Alaska Insurers Could Use Credit Scores In Renewals
|By JOSHUA BERLINGER, Associated Press|
SB55, from the
A number of insurance companies support the measure. They say the current law results in higher premium rates and market disruptions, with consumers forced to switch carriers for rates that better reflect their risk.
Forty-seven other states allows insurance companies to look at credit history when reviewing a new policy application, but
"In most cases, most consumers have good enough credit that they either are not going to be affected by their credit score, or they're going to pay less for insurance because they're going to represent a better risk than they would if we didn't use it," Brine said.
"From what I can surmise, people don't partition off the responsible portions of their lives. They don't say, `I'm going to be responsible with my finances but I'm going to let my roof rot,'" he said.
"Because most electronic devices are sold through retailers who are not usually in the insurance business, and because most portable electronics insurance is sold where the devices are purchased, without regulation a chaotic market for such insurance has evolved," Coghill said in a sponsor statement.
Both bills were held in committee.
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