NCOIL extraordinary life circumstances amendment comment letter 7.6.09x

  July 12, 2009 Honorable Charles Curtiss Chair, NCOIL Property-Casualty Insurance Committee c/o Candace Thorson 385 Jordan Road Troy, NY 12180 Re: Amendment to NCOIL Model Act Regarding Use of Credit Information in Personal Insurance Dear Representative Curtiss: 1The Casualty Practice Council (CPC) of the American Academy of Actuaries welcomes the opportunity to provide input to the National Conference of Insurance Legislators (NCOIL) regarding its possible adoption of the proposed extraordinary life circumstances amendment to the Model Act Regarding Use of Credit Information in Personal Insurance. The CPC also extends to you the offer to aid you in your continued exploration of credit-based insurance scores. Our observations herein are meant to assist NCOIL in its consideration of the proposed extraordinary life circumstances amendment, and, if such an amendment is adopted, to explore how it might be best implemented for both consumers and insurers. This letter addresses the following items: • the need for change; • areas to examine further; and • summary The Need for Change As we are all aware, the United States and most of the rest of the world is suffering from a major economic crisis. This crisis has imposed considerable hardship on both individuals and businesses, due at least in part to the severe tightening of credit, and questions of what additional                                                             1 The ...