HOUSE CONCURRENT RESOLUTION NO. 31
(Delegates Amores, Brown, Calvert, Caputo, DeLong, Ellem,
Faircloth, Fleischauer, Hrutkay, Kominar, Mahan, Morgan,
Overington, Palumbo, Pethtel, Pino, Schadler, Smirl, Staton, R.
Thompson, Webb and Webster)
Requesting the Joint Committee on Government and Finance to study
the use of credit scoring to be used as a factor in
determining the amount of a premium charged for issuance of an
insurance policy.
Whereas, Insurance companies currently use credit scoring as a
factor in determining the amount of a premium charged for issuance
of an insurance policy; and
Whereas, The credit information obtained for use may be
incorrect or incomplete and an unnecessary invasion of privacy; and
Whereas, Use of this information may unfairly discriminate
against low income and young people, or others with no established
credit history; and
Whereas, This information may be detrimental to an insureds
status, insofar as insurance could be inappropriately denied,
canceled or non-renewed due to use of this information; and
Whereas, An insureds premiums may be affected due to use of
this information; and
Whereas, Factual income information is indicative of an insureds ability to pay a premium, credit information in no way
reflects the insureds actual risk to the insurer; and
Whereas, Sound public policy requires that premium rates
charged for insurance shall not be excessive, inadequate or
unfairly discriminatory; and
Whereas, The Legislature should be encouraged to specify
premium rate development and review in accordance with insurance
actuarial best practices and procedures; therefore, be it
Resolved by the Legislature of West Virginia:
That the Joint Committee on Government and Finance is hereby
requested to study credit scoring to be used as a factor in
determining the amount of a premium charged for issuance of an
insurance policy; and, be it
Further Resolved, That the Joint Committee on Government and
Finance report to the regular session of the Legislature, 2005, on
its findings, conclusions and recommendations, together with the
drafts of any legislation necessary to effectuate its
recommendations; and, be it
Further Resolved, That the expenses necessary to conduct this
study, to prepare a report and to draft necessary legislation be
paid from legislative appropriations to the Joint Committee on
Government and Finance.
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