New Colorado bill asks for greater financial disclosure

A bill currently making its way through the Colorado House of Representatives will require consumers to disclose more of their personal financial histories. According to the Insurance Journal, the bill, if passed, will mandate that consumers provide further details of their finances to ensure greater transparency and depth to help insurance underwriters craft stronger plans for personal lines of property and casualty insurance. The bill affects auto insurance companies as well, mandating that they follow the same guidelines when employing credit information as property/casualty insurers. Lastly, the bill also denies employers the right to consumer credit histories. However, the bill was met with criticism from leading consumer advocacy groups, including AIA Colorado, which delivered a firm rebuke through its counsel, Robert Ferm. "Restricting its use and requiring insurers to disclose proprietary information is a disservice to insurers and Colorado consumers alike," Ferm told the Journal. There may be cause to require such information as bankruptcy rates among Colorado residents continues to climb. The Denver Post reports that the state's consumer bankruptcy rate jumped 17.2 percent in 2010, totaling more than 31,000 filings.