Recission of a policy results in a situation as if the policy never existed. Cancellation of a policy is effective only from the date of cancellation forward. The bill requires the insurer to give 60 days notice of the intent to rescind due to misrepresentation, before taking the action. If I were a business owner, and there was a statistically proven test to identify a bad risk, and therefore avoid it, I wouldn't want outsiders telling me I couldn't use that test. Insurance companies have data to support the practice of identifying the risk of loss by using credit history, so let the ones that choose to use that information do it.
Consumers can go to other companies for coverage.
We will discuss your reaction in a future issue. The Auto Accident Compensation Project was formed by the Center in 1992 as an information clearinghouse on auto insurance reform. Crossroads was created to inform consumer representatives, insurance professionals, policy makers and the general public about issues and trends in auto insurance and to stimulate a dialogue on these issues. Crossroads may be reprinted with attribution and prior permission. Gloria T. Lane, Artist Crossroads welcomes announcements, articles, news, comments and topic requests from readers.