Oregon Ballot Measure 42, Use of Credit Score to Determine Insurance Premiums (2006)
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In 2008, Oregon's Insurance Division discovered that Farmers Insurance was illegally using credit scores to set auto and home insurance premiums as they were renewed. The division fined the insurance company $10,000 for breaking the law. According to Farmers Insurance Company, it was a computer programming error. 
Bill Sizemore and Grace I. Sizemore.
Consumers Union, which is behind Consumer Reports magazine publicly supported the measure. Spokesperson Norma Garcia said the initiative "will go a long way to protect insurance consumers in Oregon."
Property Casualty Insurers Association of America (PCI) and other insurance industry representatives came out against the measure, saying that consumers will end up paying higher prices for insurance if they are prohibited from calculating rates based on credit scores.
"Today, 60 to 70 percent of Oregonians pay lower insurance premiums because companies use credit scores to help calculate their rates," PCI said. "If Sizemore's measure passes, Oregonians with good credit history would subsidize individuals with bad credit. Consumers may be forced to pay significantly more for their auto or homeowners insurance."
Oregonians Against Insurance Rate Increases also voiced their opposition, citing the same problems as PCI did about the measure.
Donors to the campaign for the measure:
- OREGONIANS AGAINST INSURANCE RATE INCREASES: $5,082,836
- PARENTS EDUCATION ASSOC PAC: $34,154
- Total: $5,116,990
- Overall Total: $5,116,990
- List of Oregon ballot measures
- Oregon 2006 ballot measures
- 2006 ballot measures
- Oregon State Senate
- Oregon House of Representatives
- Procedures for qualifying an initiative in Oregon
- Laws governing the initiative process in Oregon
- 2006 Oregon Election Results
- 2006 Voter Guide
- 2006 Ballot Measure Details
- Oregon Election: Blocking Credit Scoring Initiative a Top Priority from Insurance Journal, 11/7/2006
- Detailed information about this initiative from the Secretary of State