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  Auto insurance market issues
   Credit Scoring : 
         Credit scoring is playing an increasingly large part in auto and home insurance premium rating. Insurance companies contend that how a person handles their personal credit is a good indicator of their level of responsibility. People who are averse to credit scoring point out that whether or not a person has good credit has little to do with the probability of their being involved in an accident. This issue will continue to be hotly debated in the Minnesota legislature (as it has been in other states. If you have feelings one way or another, let your state legislator know your views.
   The 9/11 Tragedy: 
         Although only a few Minnesotans were directly affected by the 9/11 terrorism tragedy, insurance companies throughout the world were directly affected. All insurance companies sign reinsurance treaties and belong to reinsurance pools. When an unexpected event causes huge losses, all insurance companies must contribute. In addition, reinsurance rates for all insurance companies then increase. This in turn affects the bottom line and affects the amount that insurance companies must charge to remain profitable. In a very real way, all citizens of the United States will help to pay for the losses caused by this tragedy.
   Weather; Hail storms: 
         Higher than expected occurrences of tornados, hail, and floods have caused higher than expected damages to autos. These factors directly affect auto insurance rates.
   State Legislation : 
         Minnesota is known as a state whose legislators are concerned about the average citizen. Over the years, the state has passed legislation that favors the citizen over large companies. On the one hand, this is a good and ethical position. On the other hand, insurers contend that this type of legislation makes it more difficult for them to make a profit or to recoup their losses. As a result, several insurance companies have decided to discontinue writing insurance in the state. When this happens, the insurance companies that remain are forced to take up the slack. When insurance consumers are forced to change insurance companies, all of their auto related occurrences, as well as their credit scores are taken into account by the companies that quote these individuals as "new" risks.
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