PCI Says Consumers Will Receive Full Benefit of Credit Scoring By Fixing Alaska’s Unique Insurance Law

JUNEAU, AK — Alaska consumers will receive the full benefit from a proposed law that will enable insurers to use insurance scoring when a homeowner or auto policy is renewed, says the Property Casualty Insurers Association of America (PCI).  SB 127 was heard in the Senate State Affairs Committee last week and passed out of that committee today.

“Current law allows consumers to benefit from the use of insurance scoring when they first obtain an insurance policy, but that benefit is stripped away when the policy is renewed,” said Armand Feliciano, PCI lobbyist.  “SB 127 will allow consumers to retain their discounts from insurance scoring when they renew their policy.  Alaska’s current law has led to market disruption for consumers when insurers are prevented from using insurance scoring when the policy is renewed. This measure is a common sense approach in fixing a law that has not worked, and we commend Senator Huggins and Director of Insurance Lori Wing-Heier's leadership on this issue.”

“Results in other states demonstrates the need for SB 127.  Arkansas has had a flexible insurance scoring law on the books since 2003,” said Feliciano.  “During that time, 40 percent of policyholders have received a discount when insurance scoring was used on renewal.  Alaska consumers deserve the opportunity to retain their discount they received when they first purchased their policy.”

SB 127 will now move to the Senate Labor and Commerce Committee.