Fla. regulators again irk insurers over credit rule

Property/casualty insurers are complaining that the Florida Office of Insurance Regulation is “off the mark” in developing rules implementing a law passed in 2003 addressing insurers’ use of credit information.

Since the Legislature passed the National Conference of Insurance Legislators’ model bill on credit-based insurance scores, the OIR has been mired in controversy attempting to adopt regulations implementing that law.

After years of administrative conflict and legal challenge, earlier this year a Florida Administrative Law Judge invalidated OIR’s first set of regulations.

Now the OIR is issuing another rule that insurers say also goes far beyond the language of the statute.

“The OIR continues to push for regulations that are inconsistent with the intent of the law,” said William Stander, assistant vice president and regional manager for the Property Casualty Insurers Association of America. “This proposal, as with the last one, goes well beyond the requirement of the law by requiring insurers to document the affects of insurance scoring with demographic information not collected by, or available to, insurers.”

Stander said the state regulators are trying to prohibit insurers from using credit information by making it virtually impossible to comply with the rules.

“While Florida’s law is in the mainstream regarding how states regulate insurers’ use of credit information, the OIR interpretation is a blatant attempt to ignore the will of elected lawmakers and write its own law. We opposed the previous rule and will oppose this one just as strenuously,” he said.