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State Senate Approves Consumer Protection

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A new Senate consumer protection bill bars insurance companies from considering personal credit histories when making decisions about their clients´ homeownership policies. After passing the Senate today the bill goes to the Assembly.

The bill proposes to end a practice used by many insurers who maintain that credit histories help them estimate a policyholder´s likelihood to file a claim. The bill´s backers say it will relieve pressure on homeowners facing a tight insurance market in California.

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