Oregon Voters Defeat Credit Scoring Bill

by Mike Bevel, CollectionIndustry.com

According to Pat McCormick, spokesman for Oregonians Against Insurance Rate Increases, the defeat of Measure 42 — which would have banned the use of credit-based insurance scoring — “is a victory for Oregon consumers and, quite possibly, for consumers across the nation.”

The initiative was closely watched by friend and foe of the measure alike across the nation. The insurance industry believed the measure would set a damaging precedent. According to three insurance trade associations, Measure 42 would have increased premiums for most of the state’s residents by prohibiting insurers from using credit information in determining personal (homeowners, auto) and commercial rates.

“Voters here sent a strong message of support for credit-based insurance scoring — a ratemaking tool insurers use to evaluate risk and set accurate, fair insurance rates. They understood that, if Measure 42 passed, consumers would lose the lower rates most now enjoy because they manage personal finances responsibly,” McCormick said in a statement. “Their overwhelming decision to reject Measure 42 shows a strong majority of voters are satisfied with the consumer protections already in Oregon law. The margin of defeat here is likely to discourage efforts in other states to ban the practice.”

Oregonians Against Insurance Rate Increases was supported by a coalition of individuals, businesses and community organizations ? including the Oregon Farm Bureau, the National Federation of Independent Business and the Oregon State Chamber of Commerce.