The Connecticut legislature ended its 2009 session without taking action on a bill that would have banned the use of credit scoring by insurance companies. Insurance industry groups said credit scores provide accurate risk assessments for determining car insurance premiums.
The bill in question originally would have banned the use of credit scoring outright, but amendments to the bill made it less onerous to insurers, according to the National Association of Mutual Insurance Companies (NAMIC).
Paul Tetrault, NAMIC's Northeast state affairs manager, said the failure of the bill was a positive development, since it would have imposed unnecessary rating restrictions on insurance companies.
There is evidence to support the idea that credit scoring can provide one of the best predictors of risk associated with car owners and therefore insurance companies often use these scores to determine the price of premiums.
Numerous studies have discovered a correlation between poor credit history and the likelihood that a driver will file a claim which also plays a factor into this decision by insurance companies.
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