Oklahoma lawmakers advanced a proposal yesterday in a Senate business and insurance committee that would prohibit insurers from using consumer credit information to set rates for personal auto and homeowners insurance policies. The measure is intended to prevent rate increases based on credit history rather than claims risk.
Senate Bill 1435, filed by Senate Minority Leader Julia Kirt (D-Oklahoma City), cleared the Senate Business and Insurance Committee on a 5-3 vote after members struck the bill's title, a procedural move that can slow a measure's progress, according to Oklahoma Voice. That reporting also notes that the American Property Casualty Insurance Association told lawmakers it opposes the proposal and that committee Chair Sen. Bill Coleman requested two related measures on profits and rate oversight be laid over for further consideration. Backers cast the committee vote as an early win for consumers facing rapidly rising premiums.
Kirt Casts Bill As A Basic Fairness Fix
Sen. Kirt and her supporters argue that credit-based pricing often penalizes low-income Oklahomans and can push otherwise responsible buyers out of the market. She told local reporters the bills stemmed from constituent stories and an interim study showing that consumers with clean driving records can still pay more because of credit factors, per KSWO.
What SB 1435 Would Actually Do
The text of SB 1435 would prohibit insurers and credit reporting agencies from using a person's credit history or credit-based insurance score to underwrite or set premiums for personal lines, replacing statutory language that currently applies only to companies that use credit information. That shift would explicitly remove credit history as a permissible rating factor for personal auto and homeowners policies under state law; the bill text is available for review on the Oklahoma Legislature website.
Industry Pushback And A Volatile Market
Insurance trade groups and many carriers counter that credit-based factors improve risk classification and warn that bans can shift costs onto other policyholders; industry observers say the net effects vary by market. Oklahoma homeowners have already seen outsized premium growth in recent years, and local reporting highlights statewide averages and recent percentage jumps that lawmakers cite in pushing regulatory proposals. For background on the bills and how regulators could respond, see coverage by Insurance Journal and reporting on premium trends from KJRH.
What Happens Next At The Capitol
With committee approval, SB 1435 moves deeper into the legislative process but still faces an uncertain path in a GOP-controlled Capitol where insurers and regulators are expected to press their views. Trackers and the bill text are available on legislative sites for readers who want to follow future hearings and floor action. LegiScan.
