Oregon Measure 42 Will Bar Insurance Companies From Using Credit Scores to Set Rates
Oregon voters can decide whether insurance companies are allowed to base insurance rates for new customers on their credit scores. In 2004, voters passed a law to prohibit the insurers from using credit scores to set rates or cancel policies for current customers.
Insurances companies argue that customers with lower credit scores are more likely to have an accident or get sick. Consumer groups say no studies exist to prove that is true and credit scores are generally lower for minorities and people with lower incomes. The consumer groups also cite a 2004 study by the U.S. Public Interest Research Group showed that 25% of consumers credit reports contain such serious errors that would unfairly impact their insurance rates.
On Tuesday November 7, 2007, voters get to decide whether or not Measure 42 passes.