Contact: Liz Martins, Public Information
Officer
Phone: (775) 687-0772
E-mail: emartins@doi.nv.gov
FOR IMMEDIATE RELEASE– February 23, 2023
Statement on Nevada Supreme Court’s ruling on temporary credit score
ban
CARSON
CITY, NV – The Nevada Supreme Court upheld the Division's regulation prohibiting insurance companies
from using adverse credit information to increase premiums in personal lines of
insurance until May 20, 2024. Credit-based insurance scores, which use credit
information to price insurance, were negatively affected for many people when
the government imposed the lockdown during the pandemic. This resulted in
premium increases for some, which the Division of Insurance determined created
an unfairly discriminatory result. The Court found that “[t]he
Division acted within the province of its authority when it found that using
consumer credit scores against insureds during the pandemic and its aftermath
would result in unfair actuarial discrimination.”
“The Court’s decision provides a helpful analysis of both
the Division’s authority to promulgate regulations and how the term ‘discrimination’
may be fairly read in this matter,” said Interim Commissioner Nick Stosic. “The
intent of this regulation was to protect those consumers who were already
severely affected by the pandemic, without unfairly burdening the insurance
companies,” continued Stosic.
The Division is currently evaluating the number of carriers
impacted by this decision and will be providing guidance to carriers on how to
comply with this ruling. Regulation R087-20
was approved by the Legislative Commission on December 28, 2020; and it became
effective when it was filed with the Secretary
of State’s Office on December 29, 2020. The full text of the approved
Regulation R087-20 may be found here: https://www.leg.state.nv.us/Register/2020Register/R087-20AP.pdf.
The full text of the Nevada Supreme Court Decision may be found here: R087_20_NV_Supreme_Court_Decision.pdf
About the Nevada Division of Insurance
The State of Nevada Division of Insurance, a
Division of the Nevada Department of Business and Industry, protects the rights
of Nevada consumers and regulates Nevada’s $22 billion insurance industry. The
Division of Insurance has offices in Carson City and Las Vegas. For Fiscal
Years 2021 and 2022, the Division investigated 5,062 consumer complaints,
answered approximately 25,000 inquiries, and recovered over $8 million on
behalf of consumers. For more information about the Division of Insurance,
visit DOI.NV.GOV.
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