ANNAPOLIS, Md. — PCI's David Snyder testified during the Maryland House Economic Matters Committee hearing today considering House Bill 916 that would prohibit an insurers’ use of marital status, education and occupation and further restrict the use of credit information. The following statement regarding the the bill can be attributed to Oyango Snell, PCI’s counsel for state government relations.
“The auto insurance industry serves the driving public in Maryland by providing a highly competitive marketplace. As a result, if you don’t like your quote or the cost of your insurance, you can always shop around for a better price and we encourage consumers to do so.
"Its important consumers realize that they significantly benefit when insurers are able to use accurate predictors of loss to price their products. For example, over the past two decades credit-based insurance scores have proven to be one of the most accurate predictors for risk of loss and they allow insurers to offer lower rates to many policyholders. The majority of consumers have good credit-based insurance scores and benefit accordingly.
“If House Bill 916 were to advance it could have negative effects on consumers by potentially denying the majority of responsible policyholders lower rates in order to subsidize higher risk drivers and could potentially prevent insurers from offering discounts or underwriting specifically for service members and their families, teachers, farmers and other groups.
"PCI will continue to work with the committee and the legislature to help them understand the serious implications of this legislation. However, we do share the need to continue to address affordability issues. To effectively address affordability and save lives, we urge Maryland to enact additional highway safety measures and avoid regulatory overreach that will discourage competition."