US 2001 Legislation regarding Use of Credit Information in Insurance Resources in United States
US 2001 Legislation regarding Use of Credit Information in Insurance Resources
| State: | Bill Summary: |
| Alabama | H.B. 676 Prohibits the use of information relating to available but unused credit contained in a person’s credit report or credit history for underwriting and rating purposes relative to motor vehicle insurance. |
| California | A.B. 5 Prohibits an insurer from refusing to issue or renew a private passenger automobile insurance policy based solely on information obtained from a consumer credit report. Provides for the imposition of civil penalties on an insurer that violates its provisions. |
| Colorado | H.B. 1126 Postponed indefinitely 2/8/01 Prohibits insurers from using a consumer credit report or credit scoring information to determine either the consumer’s eligibility for noncommercial insurance or the premium to be charged to the consumer for noncommercial insurance. |
| Connecticut | H.B. 5821 Prohibits automobile insurers from using credit scores as a rating criteria. |
| S.B. 408 Revises the standard for using an insured’s credit history to establish automobile insurance rates. |
|
| Illinois | H.B. 2419 Signed by governor 8/23/01, Public Act 92-0480 Provides that insurers may not refuse to issue or renew certain policies of automobile insurance, fire and extended coverage insurance, and personal lines insurance solely on the basis of credit reports. Provides that if a credit report is used in conjunction with other criteria in making an underwriting decision, the credit report may not be based upon the race, income, gender, religion, or national origin of the applicant, and if the decision is a denial, requires the insurer to inform the applicant or insured of the denial. |
| H.B. 3554 Amends the Illinois Insurance Code. Prohibits insurance companies from utilizing credit scoring as a criterion in their underwriting standards. |
|
| S.B. 937 Amends the Illinois Insurance Code. Provides that insurance companies shall indemnify and hold harmless independent insurance producers from liability arising out of the actions or inactions of the independent producer relating to the use of credit information used in the underwriting of insurance coverage. |
|
| Indiana | H.B. 2116 Establishes an interim study committee on insurer credit scoring. Requires the committee to study the use of credit reports as an underwriting tool for the issuance of property and casualty insurance. Specifies certain issues for consideration by the committee. Requires a final report to the legislative council, including proposed legislation. |
| S.B. 553 Provides that a motor vehicle insurance rating plan filed with the insurance commissioner may not use adverse information on an individual’s credit report as a rating factor. Prohibits an insurer, in deciding whether to issue or setting the premium for a motor vehicle insurance policy, from considering adverse information on the credit report of an individual who would be covered under the policy as a named insured or the spouse or family member of a named insured. |
|
| Louisiana | S.B. 64 Prohibits insurers from obtaining or using credit information with regard to insured and applicants for automobile policies. Prohibits the use of credit information to refuse to issue or renew, increase premiums, or cancel automobile policies. Provides that a violation is an unfair trade practice. Requires the commissioner of insurance to promulgate rules and regulations which, at a minimum, provide for the suspension of an insurer’s license. |
| Minnesota | H.F. 1796 Relates to insurance; regulates the reporting of insurance information; prohibits credit scoring. |
| H.F. 2492 S.F. 2363 Limits the use of credit information; regulates trade practices. |
|
| Missouri | S.B. 64 Prohibits insurance companies from using a person’s credit history when issuing or renewing auto insurance policies. |
| Montana | H.B. 380 Missed Deadline for General Bill Transmittal 2/23/01 Limits the use of credit history in underwriting; allows the use of an individual’s credit history to vary the rates of an individual’s automobile or homeowner insurance under certain circumstances. |
| H.B. 429 Missed Deadline for General Bill Transmittal 2/23/01 Prohibits an insurer writing automobile or homeowner insurance from refusing to insure, refusing to continue to insure, varying rates, or limiting the scope or amount of coverage or benefits available to an individual based in any part on the insurer’s knowledge of the individual’s credit history. |
|
| New Hampshire | H.B. 577 Inexpedient to legislate 3/22/01 Prohibits insurers from charging a person higher premiums solely based on the fact that such person does not have a recorded credit history. |
| S.B. 126 Declares that an established automobile or homeowners insurance policy cannot be changed based in whole or in part on a change in credit rating or credit status of an insured. Any change in such policies shall be directly related to the record of the insured. |
|
| New Mexico | S.B. 284 Prohibits the cancellation of homeowner’s insurance on the basis of information from credit reports. |
| New York | A.B. 1785 Prohibits insurers from refusing to issue a motor vehicle liability insurance policy or renew an existing policy to any person solely on the basis of the credit history of the named insured or applicant. |
| S.B. 2952 Prohibits insurers from refusing to issue a motor vehicle liability insurance policy or renew an existing policy to any person solely on the basis of the credit history of the named insured or applicant. |
|
| Oregon | H.B. 2974 Prohibits an insurer from conducting a credit check of a person applying for homeowner or motor vehicle liability insurance. |
| H.B. 3427 Prohibits an insurer from denying coverage or refusing to renew policy using credit scores based on a credit check of the person applying for or renewing motor vehicle liability insurance. |
|
| Rhode Island | H.B. 5181 Prohibits the use of credit reports in connection with a consumer’s application for insurance. |
| S.B. 725 Provides that a satisfactory credit rating report is not required for the issuance of a motor vehicle liability insurance policy. |
|
| Texas | H.B. 580 Relates to underwriting decisions based on credit reports; provides a penalty. |
| H.B. 1320 Relates to a prohibition of certain underwriting or rating decisions based on credit history; providing a penalty. |
|
| H.B. 2891 Relates to legislative review of the use of credit histories as an underwriting guideline. |
|
| H.B. 2892 Relates to examination by the Texas Department of Insurance of the use of credit histories in certain underwriting guidelines. |
Leave a Reply