Use of credit scoring still hot topic
While the New Brunswick legislature has wrapped up and won’t sit until after the Sept. 27 provincial election, the issue of credit scoring and the use of credit histories for insurance purposes is still a hot topic.
Superintendent of Insurance Deborah McQuade has issued a discussion paper that addresses the province’s concerns with credit scoring.
“It has been determined that the credit history, credit rating, credit score or credit-based insurance score of a person who would be insured under the contract will be prohibited for underwriting and rating purposes for private passenger auto insurance and for underwriting purposes for residential property insurance,” the discussion paper says.
“New Brunswick also believes that the use of credit history, credit rating, credit score or credit-based insurance score for rating purposes for residential property should be prohibited, but is prepared to review proposals from industry on rating mechanisms that provide consumers with true discounts.”
The use of credit history and credit scoring for auto coverage is banned in New Brunswick. The discussion paper calls for submissions from the insurance industry about credit use for property policies. Submissions are due on May 14.
