Newfoundland and Labrador bans credit scoring in home, auto lines

The use of credit scores in underwriting home or personal property insurance is officially banned in the province of Newfoundland and Labrador.The prohibition for personal property insurance came into effect on May 13, 2011. The prohibition on using credit scores for private automobile insurance comes into effect on June 1, 2011. The Insurance Brokers Association of Ontario (IBAO) praised the Newfoundland and Labrador government’s ban. It continues to lobby for an extension of Ontario’s ban on the use of credit scores in auto to personal property lines.”We have long argued for the need of a consistent approach to the application of sound public policy,” said Randy Carroll, IBAO’s CEO. “We believe the changes made in Newfoundland and Labrador present a timely opportunity for the Ontario government to follow their lead and protect consumers.”