The National Conference of Insurance Legislators (NCOIL) has voted to reauthorize a widely adopted model law on the use of credit information in insurance scoring. NCOIL's Property and Casualty Committee approved a two-year reauthorization of the model, which prohibits insurers from taking adverse action against a current or prospective policyholder based solely on credit score. But a drafting note was attached indicating that the committee intends to examine possible refinements to the model on how the law should treat consumers with “extraordinary life circumstances.” According to an NCOIL official, 22 states have passed laws based on the NCOIL model, while four others have done so through regulatory action.

November 22, 2005