NAMIC Claims State Regulators’ Drive to Implement Best Practices for Credit Scoring Use Not Necessary

The National Association of Mutual Insurance Companies (NAMIC) called for cessation of an effort to create a “best practices” interpretation document on the use of insurance scores by the National Association of Insurance Commissioners (NAIC).

“Reasonable and balanced parameters on the use of insurance scores have been adopted in more than 30 states,” said Neil Alldredge, NAMIC state affairs director, ” resulting from adoption of the National Conference of Insurance Legislators (NCOIL) model law on insurance scoring. Incorporating the NCOIL model law largely ended any controversy surrounding the use of this proven, valuable tool.”

“Creation of a ‘best practices’ guide would undermine the law in those states that have adopted the NCOIL model,” Alldredge noted, “a model which has brought a great deal of sanity to debate on insurance scoring. NAMIC is deeply concerned that efforts of the Credit Scoring Working Group will re-kindle debate without creating any benefit whatsoever. If Insurance Commissioners seek changes to their states’ laws, they should work through the legislative process, not attempt an end-run effort at the NAIC,” Alldredge concluded.