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Gov Signs Pro-Consumer Credit Legislation

Source: Property Casualty Insurers Association of America

Posted on 20 Aug 2009

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Illinois Governor Pat Quinn today signed legislation that will benefit consumers by removing the requirement that insurers re-score their policyholders every three years.

"The elimination of the mandatory credit check is a positive development for consumers and insurers," said Greg LaCost, assistant vice president and regional manager for PCI.

“While the intent of requiring insurers recheck credit information every three years was intended to be a consumer protection, it added extra costs to the system. By making credit checks on renewals voluntary, consumers have more control and can opt for the check only when they think their score has improved.

This is another example that demonstrates insurers’ commitment to being responsive to consumer interests. Earlier this year Indiana lawmakers also removed the three-year rule. We hope other states with this rule will take note of what Illinois and Indiana have passed and consider eliminating that provision from their laws.”

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $176 billion in annual premium, 35.9 percent of the nation’s property casualty insurance.

Member companies write 43.8 percent of the U.S. automobile insurance market, 29.6 percent of the homeowners market, 32.8 percent of the commercial property and liability market, and 38.4 percent of the private workers compensation market.