Richard J. Fidei Insurance Law Blog on Lawyers.com

Credit Scoring Methodologies No Longer Confidential in Florida As of October 2

Tuesday, October 28, 2008 by Richard J. Fidei

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In an Informational Memorandum issued on September 30, 2008, the Florida Office of Insurance Regulation ("OIR") advised Florida property and casualty insurers that state laws governing public records exemptions for credit scoring methodologies expire on October 2, 2008.

At that time, any credit scoring methodologies, related data and information filed with the OIR on, or after, that date no will longer be accorded confidentiality, or be exempt from the provisions of Florida's public records law.

To view a copy of the OIR Memorandum on the issue, click here.

In a previous administrative proceeding, various industry trade associations, including the Property Casualty Insurers Association of America, challenged a second proposed Rule promulgated by the Florida Office of Insurance Regulation ("OIR") related to the use of credit reports and credit scoring by Florida insurers.

In a stipulation filed in the administrative proceeding on September 26, 2008, the OIR agreed that the current Rule is still under development and the Florida Financial Services Commission has no intention to adopt the proposed Rule in its current form.

Because further Rule development will be necessary, the OIR will follow the standard procedures in Rule development related to prior notice and opportunity to review and comment on the next version of the proposed Rule.

In an unrelated matter, the National Association of Insurance Commissioners ("NAIC") Market Conduct and Consumer Affairs (D) Committee recently considered a draft paper entitled "Review of the Use of Credit-Based Insurance Scoring by Insurers" at the 2008 NAIC Fall Meeting. No action was taken and the Committee requested that comments be submitted by October 24, 2008. To view a copy of the draft, click here.

Should you have any questions or comments, please do not hesitate to contact Colodny, Fass, Talenfeld, Karlinsky & Abate.

 
Posted at 12:44 PM
Topic: Insurance
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