Ohio regulator Covington scrambles to stay ahead of changing issues. (Briefing).Ohio Insurance Director Lee Covington was a busy man at the Summer National Meeting of the National Association of Insurance Commissioners The National Association of Insurance Commissioners (NAIC) is an Internal Revenue Code Section 501(c)(3) non-profit organization which seeks to organize the regulatory and supervisory efforts of the various state insurance commissioners from around the United States. in Philadelphia. Covington sits on a number of panels, including the NAIC/Industry Liaison and NAIC/Consumer Liaison committees The Liaison Committee is a topical committee of the British House of Commons, the lower house of the United Kingdom Parliament. It includes the Chairmen of the 30 Select Committees. , the Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Modernization modernization Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, and Anti-fraud task forces, and the Life Insurance and Annuities Committee, to name just a few. He took a short break to talk about some of the more pressing issues affecting Ohio. Q: More states seem to be passing legislation regarding the use of credit-based insurance scoring or at least considering it. What's the situation in Ohio? We are in study mode when it comes to credit scoring Credit scoring A statistical technique that combines several financial characteristics to form a single score to represent a customer's creditworthiness. . Laws on the books are that rates have to be actuarially sound, and so far, while we have seen some rate filings that have not been supported by statistical information, the large majority of filings that use credit scoring do show a statistical correlation with the risk. If there is a correlation, we have to allow the filing. But I would look at a number of aspects of credit scoring to determine if any changes need to be made. I've seen no evidence it produces unfairly discriminatory rates and, for example, no evidence that shows it discriminates against people of different income levels or different races. We haven't seen the evidence, but we'd be open to studying it. Q: But some commissioners have come out in favor of eliminating it as a practice. That's a minority of the commissioners, though. I want to stress it's currently a valid tool that emphasizes statistical actuarial ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin principles. As long as it does that, we feel it's appropriate to use. Should there be better disclosure to consumers? Yes. Should they know it's being considered in our underwriting? Yes. Q: Ohio has been affected by a series of unfavorable Supreme Court decisions that seem to have impacted the auto market, right? Yes. There was a law that overturned those Supreme Court decisions, which was passed last year. We think the law corrected the problem. Across the country, though, there is a trend of expanding coverage where coverage was not intended. We are very active in filing amicus briefs and intervention motions in auto and in the modal-premium cases out in New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). . |
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