2016-11-07                     Senate Journal                      Page 3125
SB 127                                                                                                                        
Message dated July 20 was received stating:                                                                                     
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority vested in me by Article II, Section 15,                                                                     
Constitution of the State of Alaska, I have vetoed the following bill:                                                          
                                                                                                                                
         SENATE BILL NO. 127 "An Act relating to actions                                                                        
         by insurers based on credit history or insurance score;                                                                
         and providing for an exception to consideration by an                                                                  
         insurer of credit history or insurance score."                                                                         
                                                                                                                                

2016-11-07                     Senate Journal                      Page 3126
This bill would allow an insurer to use a consumer's credit history or                                                          
insurance score when establishing a consumer's insurance rates upon                                                             
renewal of a personal insurance policy. Credit report errors are                                                                
common and can be difficult to correct. Missing or incorrect                                                                    
information in a credit report can negatively impact consumers'                                                                 
insurance scores regardless of a person's driving record, the condition                                                         
of their home, or whether they pay their bills on time. Because the bill                                                        
relies on notoriously unreliable credit score ratings and would                                                                 
adversely affect consumers, especially low-income consumers, it                                                                 
should not become law.                                                                                                          
                                                                                                                                
The bill would require that insurers provide a consumer with notice                                                             
and an opportunity for reconsideration if the consumer's insurance                                                              
premium or insurance coverage is adversely affected by the insurer's                                                            
use of credit history or insurance score. The legislation would also                                                            
require an insurer to provide reasonable exceptions to the insurer's                                                            
rates, rating classifications, company or tier placement or underwriting                                                        
rules for a consumer whose credit history or insurance score has been                                                           
adversely affected by an extraordinary life circumstance; however, this                                                         
protection is limited, invasive, and uncertain. The consumer must                                                               
affirmatively request an exception. Further, the burden falls on the                                                            
consumer to provide, at the insurer's sole discretion, detailed and                                                             
personal information about divorce, serious illness or injury, and other                                                        
adverse life events. I am concerned about Alaskan consumers who                                                                 
have suffered an extraordinary life event such as unemployment or                                                               
identity theft, facing further hurdles when seeking insurance renewals.                                                         
                                                                                                                                
For these reasons, I have vetoed Senate Bill No. 127.                                                                           
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor