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2011 Senate Bill 300: Restrict credit score use in insurance underwriting

Public Act 165 of 2012

  1. Introduced by Sen. John Gleason (D) on March 24, 2011, to prohibit insurers from using “credit information” under a broad definition of that term contained in the bill to deny, cancel or choose to not renew a policy. Also, to impose restrictions on an insurer using credit or credit-based “insurance scores” to determine the price at which it will sell an insurance policy.
    • Referred to the Senate Insurance Committee on March 24, 2011.
      • Reported in the Senate on March 8, 2012, with the recommendation that the substitute (S-1) be adopted and that the bill then pass.
    • Substitute offered in the Senate on May 1, 2012. The substitute passed by voice vote in the Senate on May 1, 2012.
  2. Passed 36 to 1 in the Senate on May 2, 2012, to prohibit insurers from using “credit information” (under a broad definition of that term contained in the bill) to deny cancel or choose to not renew a policy. Also, to impose restrictions, plus requirements for credit-status confirmation, disclosures and more, on an insurer using credit or credit-based “insurance scores” to determine the price at which it will issue an insurance policy.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the House on May 2, 2012.
    • Referred to the House Insurance Committee on May 2, 2012.
      • Reported in the House on May 10, 2012, without amendment and with the recommendation that the bill pass.
    • Amendment offered by Rep. Pete Lund (R) on May 16, 2012, to remove a tie-bar to several other insurance credit score bills, which would have meant this bill could not become law unless those ones dis also. The amendment passed by voice vote in the House on May 16, 2012.
  4. Passed 103 to 4 in the House on May 22, 2012, to prohibit insurers from using “credit information” (under a broad definition of that term contained in the bill) to deny, cancel or choose to not renew a policy. Also, to impose restrictions, plus requirements for credit-status confirmation, disclosures and more, on an insurer using credit or credit-based “insurance scores” to determine the price at which it will sell an insurance policy.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the Senate on May 23, 2012.
  6. Passed 35 to 1 in the Senate on May 31, 2012, to concur with the House-passed version of the bill.
    Who Voted "Yes" and Who Voted "No"

  7. Signed by Gov. Rick Snyder on June 14, 2012.

Comments

Re: 2011 Senate Bill 300 (Restrict credit score use in insurance underwriting )  by changeagent on May 23, 2012 
This is a perfect demonstration of the lack of difference between Republicans and Democrats. This is a clear over reach of government into the private sector. Customers have a choice in what insurance companies they do business with, and regardless of what some posters here 'think' there is obviously a relationship between credit scores and auto losses or the insurance companies wouldn't use that as a consideration for underwriting. The net effect of this law is to drive up the cost of insurance for everyone who has good credit. Republicans who voted for this should be ashamed of themselves.

Re: 2011 Senate Bill 300 (Restrict credit score use in insurance underwriting )  by isabelleelise on May 9, 2012 

It's not good when the government interferes with how businesses run their business.  This is huge government overreach into the private sector.  



Re: 2011 Senate Bill 300 (Restrict credit score use in insurance underwriting )  by VietVet68 on May 4, 2012 
Just another half a--ed attempt at trying to make auto insurance companies more transparent. Why didn't they go all the way and make it unlawful for the auto ins. co's. to use credit scores to determine rates. There are MANY good, tax paying citizens here these days that have had their credit damaged by other family members for instance, it happened to me. Why should that event determine my car insurance costs? Unbelievable! No, just typical of our legislators.

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