The director of The Heartland Institute’s Florida Insurance Project today criticized a state senator’s proposal to ban the use of credit scoring, education, and occupation in the setting of insurance rates.
On November 10, Sen. Rhonda Storms (R-Brandon) filed Senate Bill 662, which would make it illegal for insurers to use a wide variety of information when they set insurance rates.
“Study after study has shown a direct correlation between lower individual credit scores and higher claims experience. Insurers have long been using credit scores as a widely accepted and effective predictor of risk,” says Christian R. Cámara, a policy analyst at The Heartland Institute.
“Restricting or prohibiting their use as an underwriting tool will further exacerbate Florida’s already-shaky insurance market and will cause a spike in premiums for all consumers, regardless of their credit score,” noted Cámara.
Cámara runs the Florida insurance effort for the Center for Risk, Regulation and Markets, a project of The Heartland Institute. He has written and spoken extensively on Florida insurance issues.
Cámara can be reached directly for more information at 305/608-4300, [email protected].