Yesterday, the Joint Legislative Audit and Review Committee, chaired by Rep. Troy Kelley, met in Olympia. This is the bi-partisan group that meets regularly to discuss performance audits, program evaluations, and other studies geared to making our government more efficient, effective and accountable. Reps. Kathy Haigh, Sharon Nelson and Deb Wallace also serve on the committee.
Yesterday's meeting included a recap of JLARC-related news from the 2010 legislative session, including four new performance audit assignments: new stormwater permit requirements passed in the transportation budget, Medicaid cost-containment strategies, cost and use of helicopters in suppressing wildfires, and a review of the new lottery marketing strategy (as passed in this year's SB 6409).
The group also looked at two reports presented by JLARC staff: a preliminary report on Information-Sharing and Medicaid Reinstatement for Individuals Released from Confinement and the proposed final report on the Analysis of the Costs and Benefits of Accepting Bankcards at WSDOT.
These meetings are not for the casual observer, but if you really want to get into the nitty-gritty of how our state government is trying to make things work better, have at it! You can watch the meeting here. JLARC's next meeting is May 19.
Showing posts with label Sharon Nelson. Show all posts
Showing posts with label Sharon Nelson. Show all posts
Thursday, April 22, 2010
Thursday, January 21, 2010
To use, or not use, credit scores for insurance rates
At the request of State Insurance Commissioner Mike Kreidler, State Rep. Sharon Nelson sponsored HB 2513 to ban the usage of credit scores by insurance companies to calculate policy rates in our state.
It’s a very hot
issue, so hot, in fact, that it was the only bill in the Financial Institutions and Insurance Committee agenda for last night’s hearing, which drew a large crowd and lasted almost four hours. It’s also an old issue. Rep. Steve Kirby, chairman of the committee, has sponsored the same bill year after year.
“This method of rating has disproportionally impacted communities of color, and even those with good credit histories may be just one financial crisis or one late payment away from a significant change in their credit score, which could considerably increase their insurance rates even if they’ve never filed a claim or had a driving infraction. Instead of this unfair process, insurers should set rates based on factors that have a proven correlation to insurance risk – factors like driving record, age and the condition of a property,” said Nelson in her opening remarks.
“The insurance industry’s reliance on credit scoring is unfair,” said Kreidler in his testimony, stressing that it’s even more so in this bad economy when so many people are out of a job. He also held that the practice has a negative effect on many Washington residents. “Thousands of consumers have contacted my office over the last ten years; upset because they don’t understand what their credit has to do with how they drive their car or treat their property. Many have contacted their insurance companies and can’t get a straight answer on what they can do to get a better rate.”
As an example of just how unfair the process is, Kirby shared a personal story. “I bought a car but after about a year I decided it didn’t suit my needs, so I traded it in for another one and, in the same year, my dishwasher broke, so I got a new one and put it on one of those six months no interest contracts. Then I got an adverse action notice from my insurer saying that those personal financial transactions had caused my rates to go up. And they went up substantially. Obviously it’s more likely that my house is going to burn down or that I’m going to crash my car into something as a result of those financial transactions, don’t you agree?” Kirby’s sarcasm drew laughter from the crowd.
When insurance industry representatives got their chance to make their case, they told the committee that multiple studies maintain that credit scores do predict insurance risks since they show that there is a significant correlation between a person’s credit history and the likelihood that he or she will file a claim.They also said that credit reports do not include information on a person’s race, age, gender, education and income, so it’s impossible for the practice to be discriminatory.
But testimony to the contrary was overwhelming. Consumer advocates raised questions about the fairness of the use of credit scores and the disparate impact of this practice on low-income and minority groups. Among those who showed up in support of Nelson’s bill were representatives from Neighborhood House, Statewide Poverty Action Network, Hispanic Legislative Day, Columbia Legal Services, Jewish Federation, Poverty Action Network, Washington State Association for Justice, National Organization for Women and Children’s Alliance.
It’s a very hot
issue, so hot, in fact, that it was the only bill in the Financial Institutions and Insurance Committee agenda for last night’s hearing, which drew a large crowd and lasted almost four hours. It’s also an old issue. Rep. Steve Kirby, chairman of the committee, has sponsored the same bill year after year.“This method of rating has disproportionally impacted communities of color, and even those with good credit histories may be just one financial crisis or one late payment away from a significant change in their credit score, which could considerably increase their insurance rates even if they’ve never filed a claim or had a driving infraction. Instead of this unfair process, insurers should set rates based on factors that have a proven correlation to insurance risk – factors like driving record, age and the condition of a property,” said Nelson in her opening remarks.
“The insurance industry’s reliance on credit scoring is unfair,” said Kreidler in his testimony, stressing that it’s even more so in this bad economy when so many people are out of a job. He also held that the practice has a negative effect on many Washington residents. “Thousands of consumers have contacted my office over the last ten years; upset because they don’t understand what their credit has to do with how they drive their car or treat their property. Many have contacted their insurance companies and can’t get a straight answer on what they can do to get a better rate.”
As an example of just how unfair the process is, Kirby shared a personal story. “I bought a car but after about a year I decided it didn’t suit my needs, so I traded it in for another one and, in the same year, my dishwasher broke, so I got a new one and put it on one of those six months no interest contracts. Then I got an adverse action notice from my insurer saying that those personal financial transactions had caused my rates to go up. And they went up substantially. Obviously it’s more likely that my house is going to burn down or that I’m going to crash my car into something as a result of those financial transactions, don’t you agree?” Kirby’s sarcasm drew laughter from the crowd.
When insurance industry representatives got their chance to make their case, they told the committee that multiple studies maintain that credit scores do predict insurance risks since they show that there is a significant correlation between a person’s credit history and the likelihood that he or she will file a claim.They also said that credit reports do not include information on a person’s race, age, gender, education and income, so it’s impossible for the practice to be discriminatory.
But testimony to the contrary was overwhelming. Consumer advocates raised questions about the fairness of the use of credit scores and the disparate impact of this practice on low-income and minority groups. Among those who showed up in support of Nelson’s bill were representatives from Neighborhood House, Statewide Poverty Action Network, Hispanic Legislative Day, Columbia Legal Services, Jewish Federation, Poverty Action Network, Washington State Association for Justice, National Organization for Women and Children’s Alliance.
Wednesday, February 18, 2009
Large rally on campus to support ferry system
The group gathered on the steps to the Capitol around noon:
Several House members attended, including Larry Seaquist, Christine Rolfes, Judy Clibborn, Sharon Nelson and Eileen Cody.
Steven Gardner over at the Kitsap Sun has on-going coverage at his blog: Kitsap Caucus
Several House members attended, including Larry Seaquist, Christine Rolfes, Judy Clibborn, Sharon Nelson and Eileen Cody.Steven Gardner over at the Kitsap Sun has on-going coverage at his blog: Kitsap Caucus
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