CALIF. ASSEMBLY INSURANCE COMMITTEE APPROVES CREDIT-BASED INSURANCE SCORING BILL:

The American Insurance Association praised the California Assembly Insurance Committee May 5 for approving a measure implementing a modification of the national model law on the use of credit-based insurance scores developed by the National Conference of Insurance Legislators. AB 1454, authored by Assemblyman Ron Calderon (D) and sponsored by the Association of California Insurance Companies, was approved by a vote of 6 to 1. “This bill provides strong protections for consumers’ personal information,” said Janine Gibford, AIA assistant vice president, western region. “AB 1454 allows insurers to use an important tool which accurately assesses potential losses, therefore enabling companies to offer a broad range of policies while preventing consumers who properly manage their credit from subsidizing those who present a higher risk.” AB 1454 will now move to the floor for a vote by the full California Assembly.