WEST REGIONAL NEWS
Washington and Arizona are the most recent states to pass legislation addressing the use of credit information by insurance companies.
Mike Kreidler, Washington's insurance commissioner, said, "Consumers have seen their insurance rates rise or their coverage simply disappear because of an arbitrary factor called a credit score. The passage of ESHB 2544 ensures that fairness will be the number one factor in determining whether you get insurance coverage and how much you will have to pay."
The new Washington legislation states that an insurer cannot use a consumer's credit score to cancel or non-renew personal lines of insurance and that the following factors can no longer be used to deny insurance coverage or determine rates:
* The number of credit inquiries.
* Credit histories based on collection accounts identified with a medical industry code.
* The initial purchase or finance of a vehicle or house that adds a new loan to the consumer's existing credit history.
* The use of a particular type of credit card, debit card or charge card.
* The total available line of a consumer's credit.
* If an inaccurate credit history is used, the insurer must reissue or re-rate the policy retroactive to the effective date of the current policy term.
* The absence of a credit history must be evaluated based on demographics.
The Arizona bill (SB 2386) deals with notification issues and amends the definition of "adverse underwriting decision" to include a decision to assign a higher rate or to refuse to apply a premium discount or credit based upon an applicant's credit history.
Area news
State Farm raises rates
State Farm Fire and Casualty Company has implemented statewide homeowners insurance rate increases in South Dakota (21.9%), North Dakota (25.1%) and Oregon (21.5%). State Farm Mutual Automobile Insurance Company has raised overall auto insurance rates in Hawaii an average of 6.9%. This is State Farm's first overall rate increase in Hawaii since 1991.
Driver safety program introduced
State Farm Mutual Automobile Insurance Company has begun a new driver safety program called Steer Clear® in Washington,Oregon, Idaho and Alaska, which can provide a maximum of 15% premium discount for drivers under 25. The program takes 30-60 days to complete.
Vehicle theft booms
Vehicle theft is on the rise for the first time in 10 years, particularly in metropolitan areas in or near ports and Canadian and Mexican borders, or within easy reach of them. The
10 cities/metropolitan areas with the highest vehicle theft rates in
2001 were:
1. Phoenix, Arizona; 2. Miami, Florida; 3. Fresno, California; 4. Detroit, Michigan; 5. Sacramento, California; 6. Tucson, Arizona; 7. Tacoma, Washington; 8. Stockton, California; 9. Seattle, Washington; 10. Jersey, City, New Jersey.
FBI statistics show that the 10-year decline in auto theft rates has stopped, with an increase of 1.2% from 1999 to 2000. Nearly 1.2 million vehicles, costing more than $7.5 billion, are stolen nationwide each year. More than 30% are never recovered.
Arizona
Annual meeting planned
The Independent Insurance Agents and Brokers of Arizona's (IIABAZ) annual convention is scheduled for August 22-23, at the Marriott Mountain Shadows Resort in Scottsdale. For more information, contact IIABAZ at (800) 627-3356.
Utah
Bank buys insurance agency
Community First Bankshares, Inc., has acquired the Evolution Insurance Agency in Sandy, through its affiliate, Community First Insurance Agencies, Inc. The acquisition marks Community First's entry into the Utah insurance market. Community First's insurance companies operate in Colorado, Iowa, Minnesota, Nebraska, South Dakota, Utah and Wyoming. Parent company Community First Bankshares offers banking, investment, insurance, mortgage and trust products to individuals and businesses. The company's services include an online banking system that offers electronic bill payment and discount brokerage capabilities, telephone banking and an extensive ATM network.
Montana
Association to meet
The Professional Insurance Agents (PIA) of Montana will hold its annual convention September 22-24, at the Rock Creek Resort in Red Lodge. For more information, call (888) 246-4466.
Idaho
New online service
Idaho driver's license records are now online. For more details about subscribing to this new service, visit the State of Idaho's official home page, www.accessidaho.org, then click on "online services." *