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Measure 42

Argument in Opposition

MEASURE 42 IS POORLY DRAFTED AND CONFUSING

Despite the claims of its proponents, and even the official explanatory statement found in this Voters' Pamphlet, the language of Measure 42 simply prevents an insurer from using a "credit score" or a determination of "credit worthiness", as it establishes an insurance rate or premium. No language in this measure suggests it repeals existing Oregon laws that already limit insurers use of credit history information in combination with other data, as they develop risk predictive insurance scores for the underwriting and rating of personal insurance products.

In 2003, after numerous hearings, Oregon's legislature carefully used specific terms as it crafted legislation to limit the use of credit history information by insurers. Legislators purposefully avoided using the term "credit score" (a numerical sum produced by credit bureaus after consideration of many elements of credit history information). Credit scores (and determinations of credit worthiness) are considered by businesses when making credit or lending decisions. It was understood an insurer's selective use of certain aspects of credit history information, in conjunction with other factors to develop an "insurance score", was different than using a "credit score".

Inaccurate drafting and misunderstandings of Measure 42 will have the following results:

  • Oregon's courts, not voters, will determine the effect and limitations of Measure 42.
  • While the measure may arguably only apply to personal insurance products (meaning individuals with good insurance scores will subsidize persons with poor insurance scores), it could also be interpreted to apply to other insurance lines, negatively impacting businesses, churches, civic organizations, and other groups that are required to purchase insurance.
  • Insurers could be legally required to increase rates when renewing polices of customers with rates that were initially influenced by good insurance scores.

Oregonians can easily avoid these uncertain results by voting NO ON MEASURE 42.

John Powell

(This information furnished by John Powell.)


Argument in Opposition

You may be Forced to Pay Significantly more for Auto and Homeowners Insurance

I've spent my entire career advising Oregonians how to acquire the best possible insurance at the lowest possible price. Over the years, I've seen many changes in the law, some good and some bad. Measure 42 is one of the worst. Instead of controlling or reducing insurance costs for consumers, Measure 42 would result in most Oregonians paying more for their insurance. Worse yet, it would require most consumers to pay more for the same amount of coverage they currently have.

Here's why:

  • Oregonians with a good credit history would subsidize those individuals with bad credit if Measure 42 passes. That means that 60 to 70 percent of Oregonians, who currently enjoy a lower rate due to their good credit history, would be forced to pay significantly more for their auto and homeowner insurance.
  • Independent studies show that people with poor credit histories are up to three times more likely to file an insurance claim than people with good credit.
  • Oregon law already prohibits insurance companies from using credit history to raise rates or drop existing customers. Oregon's laws are among the most restrictive in the country. They allow use of an individual's credit history and only when people originally apply for insurance.
  • When using credit history, insurance companies do not use factors such as income, address, race, age, or gender. In fact, the use of credit history is specifically designed to prevent discrimination against any group.

There are always winners and losers when our insurance laws change. In this instance, there will be far more losers. This law effectively punishes people for their hard work and responsible financial stewardship by forcing them to pay more for their insurance, without getting anything in return.

I'm advising all of my customers to Vote No on Measure 42. It's a bad deal for you and a bad deal for Oregon.

(This information furnished by Richard H. Kingsley.)


Argument in Opposition

Don't Pay More for Auto and Homeowners Insurance

As an agent for Farmers Insurance, I'm proud to assist Oregonians with their auto and homeowners insurance. It is important to me that my clients have access to the best coverage at an affordable price. That's why I want to urge all Oregonians to vote NO on Measure 42.

Instead of controlling or reducing insurance costs for consumers, Measure 42 would result in most Oregonians paying more for their insurance. Worse yet, it would require most consumers to pay more for the same amount of coverage they currently have.

Sixty to seventy percent of Oregonians currently enjoy a lower rate due to their good credit. They will end up paying significantly more for their auto and homeowners insurance policies if Measure 42 passes. Independent studies show a clear correlation between poor credit histories and an increased likelihood of filing a claim.

Measure 42 is also unnecessary. Oregon's laws are among the most restrictive in the country. They allow use of an individual's credit history only when people originally apply for insurance. Insurance companies are prohibited from using credit history to raise rates or drop existing customers.

Measure 42 is a bad deal for my clients and most Oregonians. Measure 42 penalizes people for their hard work and responsible financial management by forcing them to pay more for their insurance. Worse yet, it gives them nothing in return.

I'm advising my clients to Vote No on Measure 42. Whether you are a Farmers Insurance customer or not, I encourage you to contact your insurance agent if you have questions about how Measure 42 will impact you.

(This information furnished by Ed Chun, Farmers Insurance Agent, Medford Oregon.)


Argument in Opposition

INSURANCE AGENTS
URGE A NO VOTE ON MEASURE 42

Over the years, my colleagues and I have worked with hundreds of Oregon businesses to ensure they have the commercial insurance products they need to protect their businesses, employees and customers. I urge you to vote NO on Measure 42 because it will increase insurance costs for businesses, their employees and their customers.

Virtually every commercial insurance product I sell, including all lines of commercial property, premises liability, products liability, professional liability, automobile, workers compensation, inland marine, ocean marine and umbrella insurance will be more expensive for most customers.

Here's why.

Measure 42 would prohibit the use of a business' credit history in calculating insurance premiums. A business' credit worthiness is a proven, accurate predictor of risk. More than an insured's ability to pay insurance bills, it predicts the likelihood that the insured will file an insurance claim.

Removing this tool will work against the availability and affordability of all lines of commercial insurance because it will significantly increase the risk assumed by insurers. Financial ratings help demonstrate management quality and are key components of commercial insurance underwriting. For most Oregon businesses, this means an increase in the cost of their commercial insurance because a company's credit information is a significant factor in setting business insurance rates.

That means Measure 42 would result in well-run companies subsidizing the insurance costs of their competitors that are not well managed. As a result, well-run businesses will be placed at a competitive disadvantage while poorly managed businesses will be given a competitive boost.

Oregon's insurers work hard to offer insurance coverage at an affordable price. In recent years that has become increasingly difficult. In this market, my clients cannot afford a law change that would detrimentally impact the availability and affordability of insurance in Oregon.

Please join me in voting no on Measure 42.

(This information furnished by Ronn Passmore, Rhodes-Warden Insurance, Inc., Lebanon, OR)


Argument in Opposition

Measure 42 Adversely Impacts All Lines of Commercial Insurance

Commercial insurers have used credit information for decades because it is a valid, accurate predictor of risk. Indeed, credit information is commonly used factor for many business decisions. For example, it is used broadly for employment screening, fraud detection, marketing and lending decisions.

Multiple studies have proven the correlation between bad credit and more frequent insurance claims. For example, one study showed a direct relationship between the financial health of a motor carrier and how safely its trucks and drivers perform on the highway.

If Measure 42 passes, all lines of commercial insurance will be adversely impacted, increasing the cost of doing business in Oregon. These increased costs are likely to be passed on to consumers.

Measure 42 also would result in a major cost-shift because one of the best tools for measuring risks, underwriting and pricing insurance accurately would be eliminated, thereby creating artificial market subsidization. Under Measure 42, well-run businesses would subsidize the insurance costs of their competitors that are not well-managed.

Measure 42 could adversely affect policyholders who purchase the following types of commercial property coverage: commercial property, premises liability, products liability, professional liability, automobile, workers compensation, inland marine, ocean marine and umbrella insurance. Taken in the aggregate, Measure 42 will trigger significant cost increases for most businesses.

What's worse, the additional costs come with no additional benefit for most businesses. Instead, people like ballot measure activist Bill Sizemore, Measure 42's chief sponsor, will benefit. Sizemore has been sued multiple times, owes millions of dollars in legal judgments and has been sectioned by the courts over his abuse of Oregon's initiative process. Measure 42 would mean people like Sizemore, with credit problems, would pay less for insurance, while 60 to 70 percent of Oregon families and businesses with good credit would pay more.

(This information furnished by Kelsey Wood, Gordon Wood Insurance.)


Argument in Opposition

"Your Insurance Agents Say No on 42!"

Measure 42 would prohibit insurance companies from considering credit information in determining rates and premiums for insurance. If this flawed measure were passed, personal insurance rates may go up for the 60 to 70 percent of Oregonians who now pay lower insurance rates because companies consider credit histories as a factor in setting rates.

But the poorly drafted measure also would apply to commercial insurance. Oregon would be the only state prohibiting insurance companies from evaluating the financial management practices of a business when determining their rates for commercial property, premises liability, products liability, professional liability, automobile, workers compensation, inland marine, ocean marine and umbrella insurance.

For businesses, Measure 42 would trigger major cost-shifting because most businesses benefit from the consideration insurance companies give to a company's credit information in setting insurance rates. Measure 42 would force responsible businesses and their owners to subsidize less responsible, marginal businesses.

Measure 42 affects personal insurance the same way. Oregonians with good credit histories would subsidize those with poor credit, if this measure passed.

Insurance companies want to charge a fair rate to each customer based on the customer's actual risk of future loss. For businesses and individuals, credit information has proven to be one of the most reliable methods of forecasting future losses. Eliminating the use of credit information would be unfair to the great majority of insurance customers who carefully manage their business and personal finances. Responsibility with credit has nothing to do with income levels.

Ballot measure activist Bill Sizemore sponsored Measure 42. Now small business groups, insurance companies, community groups and consumers are organizing to oppose Measure 42.

Please join insurance agents in opposing Measure 42. Vote no on your ballot.

(This information furnished by Clark Sitzes, Professional Insurance Agents of Oregon/Idaho.)


Argument in Opposition

Serial Signature Gatherer Bill Sizemore Wants to Raise Insurance Rates.

Here's what you should know about the man behind Measure 42…

"This week's winners and losers from Oregon

LOSER: Bill Sizemore is back in politics. He's a delightful guy to chat with, but you don't want him messing around with ballot measures. Despite his ethical and legal baggage, he has managed to qualify an insurance proposal for the November ballot."

Statesman Journal (Salem) – Friday, July 21, 2006

"Sizemore re-emerges: Conservative-initiative activist Bill Sizemore resurfaced with an insurance initiative despite a court injunction barring him from spending money from political committees until he pays a $3.5 million penalty for racketeering in past initiative drives. Sizemore navigated around the injunction by routing all the money for his initiative via a signature-gathering company controlled by a close associate, Tim Trickey. The two already have jointly submitted 10 initiative petitions for the 2008 cycle."

Statesman Journal (Salem) – Monday, July 31, 2006

"A report filed by conservative Bill Sizemore showed that only a tiny bit of the money for his insurance initiative passed through his hands. Instead, he reported that the money was funneled through Democracy Direct Inc., a company that works closely with him. Sizemore lost a racketeering lawsuit stemming from his past initiative campaigns and is barred by a court injunction from dispensing money from political committees until he pays a $3.5 million judgment, including attorney fees."

Statesman Journal (Salem) – Tuesday, July 25, 2006

"Four years ago, Sizemore was hit with a $2.5 million judgment after a jury found his organizations had engaged in racketeering that resulted in forged signatures and false financial statements that allowed two anti-union initiatives to be placed on the November 2000 ballot. A 2003 court injunction stemming from the racketeering lawsuit prohibited him from raising or spending money for political purposes."

Associated Press – Monday, July 17, 2006

Join Oregonians Against Insurance Rate Increases

VOTE NO on Measure 42.

www.Stop42.com

(This information furnished by Pat McCormick, Oregonians Against Insurance Rate Increases.)


Argument in Opposition

NATIONAL FEDERATION OF INDEPENDENT BUSINESS
The Voice of Small Business

Measure 42 is Bad for Small Businesses,
Their Employees and Oregon's Economy

The National Federation of Independent Business, NFIB/Oregon, is the state's premier small business organization. NFIB opposes Measure 42 because it would force well-run businesses in Oregon to subsidize the insurance costs of their competitors that are not well managed.

Measure 42 Would Force Most Business to Pay More for Insurance

Sixty to seventy percent of Oregonians and most Oregon businesses currently pay lower rates as a result of insurance companies using credit history to calculate rates. If measure 42 passes, and insurance companies can no longer consider credit history, all lines of commercial insurance will be adversely impacted including commercial property, premises liability, products liability, professional liability, automobile, workers compensation, inland marine, ocean marine and umbrella insurance.

For the small, family-owned businesses NFIB-Oregon represents, the insurance cost increases can be staggering. Small businesses work on tight margins and cannot tolerate across the board rate hikes. In the end, most businesses will be forced to pass these increased costs on to consumers or cut their incomes.

On top of that, small business owners and their employees may also be forced to pay more for their personal insurance to protect their automobiles and homes.

Current Law Protects Consumers

NFIB is active in state politics and monitored the work during the 2003 legislative session when the state legislature crafted one of the nation's toughest laws concerning the use of credit information. The carefully constructed law protects consumers. It prohibits insurance companies form raising rates or dropping current customers based on credit. It only permits insurance companies to consider credit information when a person first applies for insurance, and not again unless requested by the consumer.

Please join NFIB-Oregon in opposing Measure 42.

(This information furnished by J.L. Wilson, National Federation of Independent Business/Oregon.)


Argument in Opposition

Oregon's Family Farmers and Foresters
Urge a NO Vote on Measure 42

Family farmers and foresters represented by Oregonians for Food and Shelter have serious concerns about Measure 42. It may sound appealing at first, but upon further review you'll see that it will cost Oregon families and businesses more money for insurance.

Ballot Measure 42 is a blanket ban on the use of credit information in setting insurance rates. It poses as a fix for a problem that doesn't even exist in Oregon. Oregon consumer protection laws already are among the most restrictive in the nation on the use of credit information in setting personal insurance rates.

Today, 60-70 percent of Oregonians pay lower rates because their insurance company considers their good credit in calculating rates. But if Measure 42 passes, people with good credit would be forced to subsidize individuals with bad credit. Oregon farmers and foresters should not have to pay more for their family's auto and homeowners insurance so people with bad credit can pay less.

And if making personal insurance more costly wasn't bad enough, Measure 42 is so poorly drafted that it also would raise commercial insurance rates on Oregon farms. In fact, it would increase insurance costs for most Oregon businesses, and those costs would have to be passed on to their customers in higher prices.

Measure 42 will end up costing most Oregonians – including Oregon's family farmers and foresters – more for insurance. The only ones who might benefit are the people and businesses most likely to be filing insurance claims. That's not fair to those who have worked hard to establish good credit and stable, well-run businesses.

The farmers and foresters of Oregonians for Food and Shelter urge you to vote NO on Measure 42.

Don't let it raise your insurance rates – or ours.

(This information furnished by Terry Witt, Oregonians for Food and Shelter.)


Argument in Opposition

Small Business Owners Oppose Measure 42

The Oregon Small Business Coalition urges you to vote no on Measure 42. Oregon's small business owners have first hand knowledge of how hard it is to run a business in Oregon, provide a good salary and benefits to employees and provide for their families.

The problem with Measure 42 is that it is going to significantly increase insurance costs for most Oregon businesses. Not only will small business owners be forced to pay more for commercial lines of insurance, but they will also be on the hook for an increase in their personal auto insurance and homeowners insurance.

And why? Because these hard working business owners meet their financial obligations? Because they pay their bills on time?

That's not fair!

But that is exactly what is going to happen if Measure 42 passes. Sixty to 70 percent of hard working, responsible Oregonians will be forced to subsidize individuals who have a track record of poor management and financial irresponsibility.

Right now most businesses enjoy lower rates because insurance companies know they are responsible by virtue of their good credit. If measure 42 passes this is what will happen:

Businesses owners will pay more for my homeowners insurance

Businesses owners will pay more for their auto insurance, both at home and at my business

Businesses owners will pay more for my commercial property insurance, more for my premises liability and products liability insurance

Businesses owners will pay more for workers' compensation, more for professional liability insurance

Employees will have to pay more for the home and auto insurance and their paychecks won't starch as far…

What does this all add up to? A No Vote on Measure 42.

Please join the Oregon Small Business Coalition in Voting No on measure 42.

It doesn't add up.

(This information furnished by J.L. Wilson, Oregon Small Business Coalition.)


Argument in Opposition

Associated General Contractors (AGC) Opposes Measure 42

A significant cost of doing business in Oregon is paying for insurance. This is particularly true in the construction industry, which has endured skyrocketing construction liability rates in recent years. Oregon's construction industry, and Oregon consumers, can ill afford a new law that would increase their insurance premiums. That's why all Oregonians should vote no on measure 42.

By banning the use of credit history in calculating insurance rates, Measure 42 will increase the cost of insurance for most Oregon businesses that currently benefit from the practice. Oregon contractors work on tight margins and cannot endure a construction liability increase or a workers' compensation increase, let alone an adverse impact on all other lines of commercial insurance such as commercial property insurance, premises liability, products liability insurance and professional liability insurance.

Ultimately, these costs will be passed on to consumers and taxpayers who pay for the highways, roads, bridges and buildings AGC members construct.

Not only will Measure 42 increase rates for most businesses, but banning the use of credit information also will force well-run businesses to subsidize the insurance costs of poorly managed competitors. The result would put well-run businesses at a competitive disadvantage.

The good contractors at AGC simply cannot endure a new law that would hurt the availability and affordability of insurance in Oregon. Neither can Oregonians.

Please vote no on Measure 42.

(This information furnished by Craig Honeyman, Associated General Contractors Oregon-Columbia Chapter.)


Argument in Opposition

Oregon Restaurants Ask You To Vote NO on Measure 42

Oregon's restaurants work on tight margins so they can pay their employees a living wage and keep their prices affordable for customers.

That's why Measure 42 makes absolutely no sense for Oregon businesses and consumers.

If Measure 42 passes, it will increase insurance costs for most businesses in Oregon and these costs will be passed on to their customers. Measure 42 will adversely impact all lines of commercial insurance from workers' compensation rates to liability insurance. For many businesses these increase costs will add up to a very large price tag.

By prohibiting insurance companies from considering credit information in determining rates, Measure 42 would force well-run businesses to subsidize the insurance costs of their poorly-managed competitors. Well-managed operations should not be placed in a position of propping up their competitors that cut corners or are irresponsible with their credit.

Businesses that consistently make late payments are much more likely to place Oregonians at risk and, as a result, are much more likely to file an insurance claim. It is these irresponsible companies that should have to pay more, not well-managed businesses led by hard-working Oregonians.

Measure 42 is bad for business, bad for consumers and bad for Oregon.

Please join the Oregon Restaurant Association in Voting No on Measure 42.

(This information furnished by Bill Perry, Oregon Restaurant Association.)


Argument in Opposition

Associated Oregon Loggers (AOL)

Associated Oregon Loggers (AOL) opposes Measure 42.

Measure 42 Raises Loggers Insurance Rates

Measure 42 would increase insurance costs for most Oregon loggers and increased costs are the last thing we need. The measure will force well-run Oregon businesses, of all kinds, to subsidize the insurance costs of their competitors that are not well managed. Measure 42 adversely impacts all lines of commercial insurance and will increase the relative cost of doing business in Oregon.

For the small, family-owned logging businesses AOL represents, insurance costs can be quite substantial. For labor-intensive, high-risk logging operations, workers' compensation costs can be among the highest in the state. Small logging businesses work on tight margins and cannot afford to endure a workers' compensation increase, let alone an increase in all other lines of commercial insurance such as commercial property insurance, premises liability, products liability insurance and professional liability insurance.

Measure 42 will negatively impact rural Oregon

AOL members provide well-paying jobs in rural regions of the state where there are often few family wage jobs. These communities simply cannot afford the loss of additional employment opportunities that could result from passage of Measure 42.

Measure 42 is Unnecessary

Numerous studies show clearly that companies that are not financially well-managed file more insurance claims. Without being able to consider a company's credit worthiness, insurance companies will be forced to lump all customers together, lowering costs for those with poor credit and increasing costs for most customers who have earned a positive credit history.

Please join Associated Oregon Loggers in voting No on Measure 42.

(This information furnished by Jim Geisinger, Executive Vice President, Associated Oregon Loggers, Inc.)


Argument in Opposition

Oregon Metals Industry Council—Oregon Businesses Don't Like Measure 42.

The Oregon Metals Industry Council (OMIC) opposes Measure 42, the ballot measure that would increase the cost of insurance for businesses and their employees.

If Measure 42 passes, insurance costs for most businesses in Oregon will increase. This is particularly true for the manufacturing industry, a labor-intensive, technology-based, high-risk industry. Measure 42 adversely impacts all lines of commercial insurance and will increase the relative cost of doing business in Oregon. The measure would force well-run businesses to subsidize the insurance costs of their competitors that are not well managed. This effectively places well-managed companies at a competitive disadvantage and runs contrary to building a healthy economy.

In addition to raising insurance rates for Oregon businesses, Measure 42 also would adversely impact Oregonians in their personal lives. Sixty to seventy percent of Oregonians will pay higher rates for homeowners and auto insurance if this costly measure passes. Because Measure 42 would ban credit, it will result in most Oregonians paying more for insurance.

OMIC member companies employ thousands of hard-working Oregonians for a variety of family-wage jobs in the manufacturing and metals industry. OMIC wants to ensure their employees paychecks are not wasted by having to pay significantly more for their auto and homeowners insurance.

What's even worse is that Measure 42 would increase rates for most Oregonians without providing any benefit in return. That's because Measure 42 is unnecessary. Oregon consumer protection laws are already among the strictest in the country on the use of credit information in setting rates. Oregon laws already prohibit insurance companies from using credit history to raise rates or drop existing customers. In addition, they only allow insurers to use credit information when people first apply for insurance and not again, unless requested by the consumer.

Please join the Oregon Metals Industry Council in voting no on Measure 42, the ill-conceived measure that raises insurance rates.

(This information furnished by Mark Nelson, Executive Director, Oregon Metals Industry Council.)


Argument in Opposition

Taxpayers Beware: Vote NO on Measure 42

There's a measure on this year's ballot that at first looks good, but once you read between the lines, I think you'll agree that Measure 42 is a costly measure that doesn't benefit Oregon taxpayers.

Measure 42 would prohibit insurance companies from considering credit information in determining rates and premiums for insurance. If Measure 42 passes, personal insurance rates will go up for the 60 to 70 percent of responsible Oregonians with good credit.

But the bad news for taxpayers doesn't stop there. The ambiguously drafted measure also would apply to commercial insurance. This would make Oregon the only state in the nation that prevents insurance companies from reviewing a business' financial responsibility when setting rates for virtually all lines of commercial insurance.

For businesses, Measure 42 would create a cost-shift. Today, most businesses benefit from the consideration of a company's credit information in setting insurance rates. But Measure 42 would force responsible businesses and their owners to subsidize less responsible, businesses that cut corners. These increase costs will be passed along to consumers in the form of higher prices.

Measure 42 affects personal insurance the same way. Oregonians with good credit histories would subsidize those with poor credit.

That's not fair to Oregon taxpayers.

Please join Oregon FreedomWorks in Voting NO on Measure 42.

(This information furnished by Russ Walker, Oregon FreedomWorks.)


Argument in Opposition

Associated Oregon Industries

The Associated Oregon Industries is Oregon's largest business organization representing more than 20,000 businesses, large and small, throughout the state. As representatives of Oregon businesses and their employees, we urge you to vote no on Measure 42.

Measure 42 Raises Insurance Rates for Oregon Businesses

Measure 42 would raise insurance rates from most Oregon business.

Not only would it raise auto insurance rates, but also other lines of insurance purchased by Oregon businesses including commercial property insurance, premises liability and products liability insurance workers' compensation and professional liability insurance.

Individually this can be a major cost increase. When added together, this is a major hit on many businesses bottom line. Businesses will be forced to pass this added expense on to consumers, making the price of goods and services you buy more expensive.

Once more, the auto and homeowners insurance of small business owners and their employees will also see a rate hike in most instances. That means less money to go around for their families on top of all the increased business costs.

Measure 42 is bad for Oregon's Business Environment

Oregon competes for family wage jobs, not only with other states, but with the entire world. It is critical for Oregon's economy that our laws protect workers and provide for a positive business environment. Already, Oregon businesses are facing significant insurance cost increases. Businesses cannot sustain these costs over time, and either pass the cost on to consumers or move to a state or nation with more favorable laws. Businesses looking to relocate or expand also will be put off by higher than average insurance costs.

Measure 42's Impact on Personal Insurance also is Bad for Business

Many of Oregon's small businesses are impacted more by personal insurance than commercial insurance. For 60 to 70 percent of Oregonians, Measure 42 will mean an increase in insurance rates.

Please join Oregon businesses and employees in voting no on Measure 42

(This information furnished by Richard M. Butrick, President, Associated Oregon Industries.)


Argument in Opposition

Measure 42 is Unnecessary and Will Cost Most Oregonians More for Insurance

When credit was introduced as a factor in qualifying and rating insurance consumers, some agents were skeptical. However, Oregon adopted a consumer protection statute in 2003 which addresses the use of credit by insurers. It is among the most restrictive in the country. Measure 42 would wipe out all these protections and instead ban any consideration of credit information all together. This is too extreme and would result in most consumers paying more for their insurance. The existing law has been a responding success. Before it was enacted, the there were more than 100 complaints per year. This year, there have only been three.

Agents have been able to see how the use of credit can benefit new customers seeking auto or homeowners insurance. It allows insurance companies to evaluate risk. Independent studies have concluded that an individual's credit history is a strong predictor of how likely it is they will file an auto or homeowner's claim. A majority of Oregonians who currently enjoy lower rates because of their good credit will end up paying more to subsidize those who have been less responsible with their finances

The existing law prohibits insurance companies from using credit history to raise rates or drop existing customers. Insurers are only allowed to use credit information once – when people first apply for insurance – and not again unless requested by the consumer. The law also prohibits the use of credit to increase premiums for existing policyholders and prohibits insurers from using credit records to cancel or not renew existing policyholders. It also stipulates that insurers must rely on other relevant factors such as your driving record and claims history. Insurers may not consider the fact that an individual does not have a credit history. Nor can they consider an individual's total line of credit.

Please join me in voting no on Measure 42.

(This information furnished by John Munro, Independent Insurance Agents & Brokers of Oregon.)

 

 

Elections Division, Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722