JUNEAU (AP) A bill that regulates insurance companies' use of credit ratings in making insurance coverage decisions was signed Wednesday by Gov. Frank Murkowski.
The bill prohibits companies from using credit ratings as the sole reason to determine premiums or deny insurance coverage. And it does not allow the use of credit ratings unless the scoring models a company is using are filed with the Division of Insurance.
Senate Bill 13 also requires insurance companies to inform consumers if they're using credit information in making decisions. It restricts the use of credit history that is negatively affected by a spouse who is a party to a divorce. And it restricts companies from denying coverage for several other reasons, including lack of a credit history or use of a certain type of credit card.
Sens. Kim Elton, D-Juneau, and John Cowdery, R-Anchorage, co-sponsored the measure.
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