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House floor debate centers on limited use of credit scores in initial auto-insurance underwriting
Summary
Representative Wallace explained Senate amendments allowing insurers to use credit scores for customers with no prior relationship with the company as part of initial underwriting. Members questioned federal preemption and whether an initial score could permanently harm customers’ insurance prospects.
Representative P. Wallace told the Utah House that recent Senate amendments to the motor-vehicle insurance bill would allow insurers to use a credit score when underwriting someone who has never been a client. "They will be able to use a credit score along with risk-related factors," Wallace said, calling the change a narrow allowance for initial underwriting.
Lawmakers pressed the sponsor on the permanence and federal implications of the change. Representative (speaker 20) asked whether federal law limits state action; Wallace responded, citing "United States code 16 16 81," and said that the amendment is designed to be limited and not the primary factor for established customers. "It will not be the only deciding factor or the primary deciding factor," Wallace said, adding the rule is intended to help independent agents with brand-new business.
Several members also raised concerns that an initial credit score could stigmatize a customer indefinitely. Wallace said the bill allows companies to reassess rates for customers after an initial relationship is established — including giving discounts for improved circumstances — and that the Senate language preserves about "95%" of the bill's original protections.
The sponsor urged members to vote to concur with the Senate amendments. On the floor, the motion to concur was presented and discussed under suspension of the rules. The transcript records debate and questions about federal preemption and consumer protection but does not include a definitive roll-call outcome for the House's concurrence on this specific amendment in the excerpt provided.
The next procedural step recorded for Senate-amended bills on this legislative day was consideration on the concurrence calendar and, where applicable, referral back to the Senate for signature or further action.
