The government of New Brunswick has proposed a number of regulations that may stop car insurance companies from being able to include data relating to an individual’s credit score in order to determine whether or not they will insure them, and what their premiums will be every month.
There were a number of draft regulations posted by the Department of Justice on its website for public consultation that would change the guidelines for underwriting by insurers.
The consumer advocate for insurance of New Brunswick, Ronald Godin, began his push for these changes in 2010. He explained that he believes that it is not appropriate for an insurer to use an individual’s credit history in order to establish that person’s premiums for coverage.
Godin has said that to him, allowing the companies to use that information for gauging how much a consumer will pay or whether or not he or she is insurable is a form of moral judgment. He said that “You know, if I pay you on time and I haven’t submitted a claim what is it your problem? That I’m a little late on my Visa payments?”
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Similarly, the regulations that he is requesting will also stop insurance companies from being able to refuse coverage for older vehicles.
The proposed changes to the regulations will stay on the website for public consultation for the province until December 16, 2011, allowing interested groups and individuals to leave their feedback and comments on the topic.
Should the government decide to support these regulatory changes, they could become effective soon after the completion of the public consultation.