Insurance policyholders in Nevada who have experienced an "extraordinary life event" are now allowed to ask insurers not to use their credit information when assessing what their premiums will be.
The passage of Assembly Bill 74 gives consumers the ability to submit the request to insurers because the significant life event may have adversely impacted their credit information. The new law defines these type of consequential happenings as serious illnesses; the death of a spouse, child or parent; divorce or involuntary interruption of support payments.
If consumers submits their petition, insurers can request that they provide documentation that proves the extraordinary event happened and how it affected their credit information.
"This is an important chance for some Nevadans who have suffered an unfortunate event to find relief during these trying economic times," said Scott Kipper of the Nevada Division of Insurance.
For others, credit history can still play a role in insurance costs. In addition, some consumers' credit scores may be depressed due to improper notations on their credit reports. If consumers don't have the issue addressed, the error may drive up their insurance rates.