State bill would alter insurance rate policy

Published on

The San Francisco Chronicle

The state Assembly committee on insurance approved a measure Wednesday to let insurers use customers credit history as a factor when setting rates for homeowners insurance.

If approved, AB 1454 would overturn regulations imposed by Insurance Commissioner John Garamendi. But some consumer groups, such as the Foundation for Taxpayer and Consumer Rights, complained that using credit scores would hurt low-income and minority customers, who often have worse credit, and is irrelevant to homeowners insurance.

The bill was sponsored by Ron Calderon, D-Montebello (Los Angeles County).

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