New Brunswick draft regulation proposes to ban credit scoring in residential and auto insurance lines

New Brunswick’s department of justice has posted draft regulations for public consultation that would ban credit scoring in residential property and auto insurance lines.
In addition, the draft regulations would not allow insurers to decline to issue, refuse to renew or terminate coverage on the grounds of a person’s age, gender or marital status.
The draft regulations would also prohibit insurers from refusing coverage to:
• applicants who have been insured by the Facility Association;
• applicants who were declined insurance or refused a renewal by another insurer;
•people who have experienced a lapse in coverage for a period of less than two years, or
• people who have made a claim in the past for which they were at fault.
Finally, the draft regulations state an insurer would not be allowed to decline to issue, refuse to renew or terminate auto insurance on the grounds of a vehicle’s age. Exceptions to this include antique vehicles, reconstructed vehicles and vehicles “substantially modified for enhanced performance.”
The draft regulations will be posted on the Government of New Brunswick’s Web site for comment until Dec. 16, 2012.
As currently worded, they call for the ban on credit scoring in auto lines to take effect on Jan. 1, 2012. The ban on credit scoring for underwriting purposes in residential property lines would take effect on Jan. 1, 2013.
The draft regulations can be viewed at:
http://www2.gnb.ca/content/dam/gnb/Departments/eco-bce/pdf/pr/2011/11/11-151E.pdf