Colorado House Democrats

Legislators Help Reduce Discriminatory Insurance Practices

Legislation that stops ‘Big Insurance’ from using credit scores when weighing decisions passes House committee

(DENVER) – The House Business Affairs Committee moved to prohibit insurance providers from weighing consumer credit scores when issuing insurance and adjusting rates.  House Bill 1143, sponsored by State Representative Dorothy Butcher (D-Pueblo), passed the House Committee by a vote of 6 to 5.

“Simply stated, correlation is not causation,” said Rep. Butcher.  “To date, no causal connection has been shown that indicates consumer credit scores are a good predictor of claims frequency.”   

Currently, it is common practice for insurance companies to use credit scores when weighing whether to underwrite property and casualty insurance policies.  Companies also use credit score calculations to determine when consumers should face rate hikes.  Research shows this practice disproportionately hurts minorities and low-income residents.    

“An individual’s ability to drive, whether he or she is a responsible homeowner, these are not at all related to credit scoring,” said Rep. Butcher.  “It is not appropriate to treat the two as if they are married.  This is discrimination, plain and simple, and we will stop it.”

The proposed legislation applies to property and casualty insurance providers.  It does not limit an insurer’s ability to use verifiable risk behaviors – including those that increase costs to the insurer – in their decision making process.  It also does not limit an insurer’s ability to terminate abusive claim holders’ policies.   

HB 1143 now moves to the full House for further debate.

-- Posted by staff

House Democrats Elect Andy Kerr to Majority Whip “The next generation of Democratic leadership”

DENVER – It’s official: The 40-member House Democratic Caucus elected State Representative Andy Kerr (D-Jefferson County) to be its Majority Whip.  Representative Edward Casso (D-Adams County) was previously elected to the position of Deputy Whip.

Rep. Kerr, set to serve in his third legislative session, will take over duties from State Representative Dorothy Butcher. She resigned from the position in October to make more time for her upcoming run for Pueblo County Commissioner.  Rep. Butcher endorsed Rep. Kerr’s bid to succeed her.

“You’re looking at the next generation of leadership for the Democrats,” said Majority Leader Alice Madden, one of six Democrats who will face term limits after this upcoming legislative session.  “Leaders like Andy Kerr, Ed Casso, and the nine other freshmen in our caucus will take our agenda into the next decade.”

"I am honored to have the support of my colleagues,” said Rep. Kerr.  “We’re going to be working shoulder-to-shoulder to forward our Democratic agenda. I hope to assist the leadership team in keeping us focused on the issues that are important to all Coloradans: health care, education, and renewable energy.”