There’s Still Time to Protect Your Insurance Discounts!

January 9, 2004, Statement from TCAIS Director Beaman Floyd

Reminder: The Texas Department of Insurance is taking public comments about credit-based insurance scoring until January 12th so you still have the chance to share your opinion!

On Wednesday, January 7th, the Texas Department of Insurance (TDI) held a hearing in Austin to discuss a pivotal rule about credit-based insurance scoring. Thank you to those of you who sent letters expressing your opposition to restrictions on using credit information.

Credit-based insurance scoring is an objective tool that allows insurers to more accurately assess risk and price premiums accordingly. Proposed restrictions on this tool are a bad idea and the large majority Texas consumers will pay the price.

Credit-based insurance scoring saves money for an estimated 60% or more of Texas policyholders. Under the proposed 10% “collar,” consumers with positive credit scores may see their rates go up if their discount is reduced to 10%.

We were encouraged when Texas Insurance Commissioner Jose Montemayor said, "I don't want an arbitrary setting of a number resulting in millions of Texans paying more for their insurance policies."

NOW HE NEEDS TO HEAR THAT YOU AGREE!

• Fax or send written comments to the Department by 5 p.m. Monday, January 12th to explain that low-risk consumers should not have to subsidize high-risk consumers. Everyone should pay rates that reflect their own risk.

The Texas Insurance Commissioner needs to hear from Texas consumers like you!

For the latest information about the insurance market, please visit our Web site at www.tcais.org.