US 2003 Legislation regarding Use of Credit Information in Insurance Resources

US 2003 Legislation regarding Use of Credit Information in Insurance Resources in United States

US 2003 Legislation regarding Use of Credit Information in Insurance Resources

 State:  Bill Summary:
 Alabama S.B. 271
Existing law does not prohibit an insurer from making an underwriting decision based on a credit report.  This bill prohibits an insurer from making an underwriting decision based on a credit report.  Allows an insurer to refuse to accept premium payments in installments from a person whose nonpayment of premiums caused a lapse in an insurance policy of the person within two years preceding the date on which the request to pay premiums is made.  Provides for the imposition of civil penalties against insurers who violate this act.
S.B. 494
Regulates the use of credit information in determining whether to underwrite or rate risks.  Requires an insurer to reunderwrite or rerate the insured if it is determined through a dispute resolution procedure that the credit information on which the original insurance was issued was incorrect.  Requires each insurer who uses credit information in underwriting or rating a consumer, insurer, or agent to notify the consumer, insurer, or agent of the use of information.  Requires each insurer who takes adverse action based on credit information to notify the affected person.  Requires each insurer who uses insurance scores to underwrite or rate risks to file the scoring models or other scoring process used by them.  Requires each insurer who uses credit information to underwrite or rate risks to indemnify, defend, and hold harmless its agents.  Prohibits the sale of policy terms by a consumer reporting agency.
 Alaska H.B. 5
Relates to using credit history or insurance scoring for insurance purposes.
H.B. 47
Relates to using credit rating or credit scoring for insurance purposes.
S.B. 13
Signed by governor 8/6/04, Chapter 150
Relates to using credit history or insurance scoring for insurance purposes.
 Arizona H.B. 2032
Signed by governor 5/6/03, Chapter 151
Eliminates the list of typical items relative to an individual’s credit history that could affect the consumer report.  Requires a description of up to four factors that were the primary cause of an adverse underwriting action.  Prohibits the following types of credit history for calculating insurance scores to determine property or casualty premiums:  1) Absence of credit history or the inability to determine a consumer’s credit history, unless it is actuarially justified.  2) States that the absence of credit history may be used in an insurance score if the insurer treats the consumer as if the consumer had neutral credit information.  3) Credit history or insurance scores based on collection accounts identified with a medical industry code.  4)  A bankruptcy or lien satisfaction that is more than seven years old.  5) The use of a particular type of credit card, charge card or debit card, unless it is actuarially justified.  6) The total available line of credit, except that an insurer may consider the total amount of outstanding debt.  7) An insurance score that uses income, gender, address, zip code, ethnic group, religion, marital status or nationality of the consumer as a factor.  The bill clarifies that this provision does not prohibit an insurer from using zip code, address, gender and marital status information for underwriting purposes.  Provides an effective date from and after August 31, 2004.
H.B. 2183
Modifies state law to require insurers to disclose the primary reasons for an adverse underwriting decision and prohibits the use of certain types of credit history for the calculation of an insurance score for underwriting purposes.
S.B. 1265
Signed by governor 4/28/03, Chapter 120
Requires a homeowners insurance company to obtain information related to the property at the time an application for insurance coverage is made or before the issuance of a binder of insurance coverage.  Specifies that information obtained may include a consumer report, database, a report provided by an insurance support organization or CLUE.  Provides that if an insurer used information obtained by an insurance support organization or consumer reporting agency, the insurer shall obtain information about a premise as soon as practicable upon application or issuance of a binder for coverage.  Specifies that failure to timely obtain the required information precludes the insurer from declining insurance coverage or terminating a binder of insurance coverage.  States that after thirty days from the application by an insured for insurance coverage an insurance provider cannot decline or terminate insurance coverage based on information obtained from a consumer report, data bases maintained by an insurance support organization or consumer reporting agency.  Clarifies that the bill does not affect ARS 20-1120 relating to binders or other contracts for temporary insurance.  Specifies that an insurer may decline or terminate insurance coverage based on the condition of the premises through a physical inspection.
 Arkansas S.B. 846
Signed by governor 4/17/03, Act 1452
Concerns the use of consumer reports in underwriting and rating of property and casualty personal lines of insurance.
 California S.B. 691
Prohibits an insurer from using, in whole or in part, credit ratings, credit reports, credit scoring models, or other related credit or financial information as a basis to underwrite, rate, or determine a placement in a particular payment plan for specified policies.  Requires the Insurance Commissioner to enforce these provisions, as specified.
 Colorado H.B. 1055
Postponed indefinitely 1/24/03
Makes a legislative declaration detailing the use of credit scoring by the casualty insurance industry and declaring that it is an unfair and deceptive method, inappropriate for determining a consumer’s insurance risk.  Makes the use of credit scores for the purpose of issuing insurance an unfair practice in the business of insurance.  Prohibits a consumer reporting agency from furnishing a consumer report to a person the agency has reason to believe intends to use credit scoring information for the purpose of underwriting or rating insurance.
H.B. 1273
Signed by governor 4/1/03, Chapter 100
Requires an insurer who uses credit scoring to notify applicants or policyholders.  Upon request, requires an insurer to provide an explanation of the significant characteristics of the credit information that impact the insurance score.  Requires an insurer to comply with the federal “Fair Credit Reporting Act” if the credit information results in an adverse action to a consumer.  Requires the notice to include:  1) The name, address, and telephone number of the credit reporting agency; 2) The consumer’s right to receive a free credit report; and 3) The right to dispute erroneous information.
 Connecticut H.B. 5490
Failed Joint Favorable deadline 3/27/03
Prohibits the use of an individual’s credit history in automobile insurance underwriting.
 Delaware S.B. 95
Laid on table 6/10/03
Makes it an unfair practice in the business of insurance for an insurer to use credit scoring or credit history in the process of applying for or underwriting private passenger motor vehicle insurance.  Creates a blanket prohibition against using credit scoring or an individual’s credit history in connection with an application for or the underwriting of private passenger motor vehicle insurance.
 Florida H.B. 101, Special Session A
Withdrawn prior to introduction 5/13/03
Specifies that act’s purpose is to regulate and limit use of credit reports and credit scores by insurers for underwriting and rating purposes; specifies the types of insurance to which the act applies; prohibits an insurer from making an adverse decision based solely on a credit report or score or certain other factors; requires an insurer to adhere to provide for adjustment in premium of insured to reflect improvement in credit history.
H.B. 109, Special Session A
Died 5/27/03
Specifies purpose is to regulate and limit the use of credit reports and credit scores by insurers for underwriting and rating purposes; specifies the types of insurance to which the act applies; requires that an insurer identify items in a credit report which resulted in adverse decision; requires an insurer to adhere to certain laws and rules; authorizes the Financial Services Commission to adopt rules.
H.B. 111, Special Session A
Died 5/27/03
Creates a public records exemption for credit scoring methodologies and related data and information that are trade secrets filed with Insurance Regulation Office; provides for future review and repeal; provides statement of public necessity.
H.B. 133, Special Session A
Died prior to introduction 5/27/03
Provides popular reference name of “Use of Credit Information in Personal Insurance Act”; specifies prohibited activities for insurers using credit information for certain purposes; requires insurers to reunderwite or rerate consumers under certain circumstances; requires insurers to disclose certain credit information acquisition activities under certain circumstances and to secure authorization for such activities.
H.B. 135, Special Session A
Died prior to introduction 5/27/03
Creates a public records exemption for credit scoring methodologies and related data and information that are trade secrets filed with Insurance Regulation Office; provides for future review and repeal; provides statement of public necessity.
H.B. 233
Died in committee 5/2/03
Provides popular reference name of “Use of Credit Information in Personal Insurance Act”; specifies prohibited activities for insurers using credit information for certain purposes; requires insurers to reunderwrite or rerate consumers under certain circumstances; requires insurers to disclose certain credit information acquisition activities under certain circumstances and to secure authorization for such activities.
H.B. 987
Died on calendar 5/2/03
Specifies purpose to regulate and limit use of credit reports and credit scores by insurers for underwriting and rating purposes; specifies application to types of insurance; requires that an insurer identify items in a credit report which resulted in adverse decision; authorizes insurers to use a number of credit inquiries for certain purposes; authorizes the Financial Services Commission to adopt rules.
H.B. 1895
Died in messages 5/2/03
Creates a public records exemption for credit scoring methodologies and related data and information that are trade secrets filed with the Insurance Regulation Office.
S.B. 40, Special Session A
Signed by governor 6/26/03, Chapter 407
Relates to insurance consumer protection; reenacts and amends certain provision, notwithstanding amendments to that subsection by HB 513, 2003 Regular Session of Legislature; specifies purpose is to regulate and limit use of credit reports and credit scores by insurers for underwriting and rating purposes; specifies types of insurance to which act applies; requires that insurer identify items in credit report which resulted in adverse decision.
S.B. 42, Special Session A
Signed by governor 6/26/03, Chapter 408
Creates a public records exemption for credit scoring methodologies and related data and information that are trade secrets filed with Insurance Regulation Office; provides for future review and repeal; provides statement of public necessity.
S.B. 204
Vetoed by governor 6/26/03
Specifies the act’s purpose is to regulate and limit use of credit reports and credit scores by insurers for underwriting and rating purposes; specifies types of insurance to which the act applies; requires that an insurer identify items in a credit report which resulted in adverse decision; requires an insurer to provide for adjustment in premium of insured to reflect improvement in credit history.
S.B. 1770
Died in messages 5/2/03
Creates an exemption from public records and meetings requirements for certain information held by the Florida Institute of Human and Machine Cognition; creates an exemption from said requirements for specified materials, actual and potential trade secrets, information identifying donors to the institute; creates an exemption for credit scoring methodologies and related data and information that are trade secrets filed with the Insurance Regulation Office.
 Georgia H.B. 215
Signed by governor 5/20/03, Act 79
Relates to insurance generally, so as to provide definitions; provides for the use of credit and credit scoring information in underwriting or rating risks by insurance companies; provides limitations on the use of such information; provides for dispute resolution and error correction; provides for notifications; requires certain filings by insurers using credit and credit scoring information; provides for indemnification.
 Illinois H.B. 502
Prohibits the use of credit reports in the underwriting and pricing of homeowners insurance.
H.B. 1640
Signed by governor 7/9/03, Act 93-0114
Creates the Use of Credit Information in Personal Insurance Act.  Sets forth the manner in which credit information may be used in the underwriting and rating of personal insurance.  Applies only to personal insurance.  Provides for resolution of disputes over alleged errors in the credit information used by insurers.  Requires insurers to file credit scoring models with the Department of Insurance.
H.B. 3661
Signed by governor 8/8/03, Public Act 93-0477
Amends the Illinois Insurance Code and the Health Maintenance Organization Act.  Amends the Use of Credit Information in Personal Insurance Act, created by 93 House Bill 1640.  Changes the requirement that an insurer treat a consumer in a manner approved by the Department of Insurance to a requirement that an insurer treat a consumer in the manner filed with the Department of Insurance.
S.B. 92
Provides that insurers may not establish premium rates for homeowners or renters insurance that are based upon the insured’s or applicant’s credit report or credit score.
S.B. 818
Creates the Use of Credit Information in Personal Insurance Act.  Sets forth the manner in which credit information may be used in the underwriting and rating of personal insurance.  Applies only to personal insurance.  Provides for resolution of disputes over alleged errors in the credit information used by insurers.  Requires insurers to file credit scoring models with the Department of Insurance.
 Indiana H.B. 1187
Prohibits the use of credit information in underwriting, issuance, renewal, or cancellation of property and casualty insurance.  Makes a violation an unfair and deceptive act and practice in the business of insurance.
H.B. 1213
Imposes several requirements on an insurer’s use of credit information in the underwriting of personal property and casualty insurance.  Makes a violation of the requirements an unfair and deceptive act in the business of insurance.
H.B. 1323
Establishes certain restrictions on an insurer’s use of credit information in the underwriting of personal property and casualty insurance.
H.B. 1406
Applies requirements to an insurer’s use of credit information in the underwriting of personal property and casualty insurance.
H.B. 1634
Prohibits the use of credit information in underwriting, issuance, renewal, or cancellation of property and casualty insurance.  Makes a violation an unfair and deceptive act and practice in the business of insurance.
S.B. 178
Signed by governor 5/7/03, Public Law 201
Imposes certain requirements and restrictions concerning the use of credit information in the underwriting of property and casualty insurance.  Excludes commercial lines of insurance from the requirements and restrictions.  Makes a violation of the requirements and restrictions an unfair and deceptive act and practice in the business of insurance.
S.B. 294
Provides that: (1) a motor vehicle insurance rating plan may not use, as a rating factor, adverse credit report information; and (2) a motor vehicle insurer may not consider adverse credit report information in certain underwriting activities.
 Kansas H.B. 2071
Signed by governor 4/22/03
Creates the Kansas Insurance Score Act, which regulates the use of credit scores in issuing certain policies.
S.B. 144
Failed to pass House 3/28/03
Creates the Kansas Insurance Score Act, which regulates the use of credit scores in issuing certain policies.
 Kentucky H.B. 94
Passed House 2/28/03
Amends KRS 304.20-040 to provide that if an applicant or insured is 65 years of age or older and lacks a credit history, an insurer must exclude the use of credit history as a factor in determining rates or in a decision to decline, refuse to renew, or cancel a policy of automobile insurance.
H.B. 142
Amends KRS 304.20-042 to define “credit history”; prohibit an insurer from using credit history in rating property and casualty insurance; requires the written notice of a renewal premium that contains a premium increase to specify the reason for the premium increase; amends KRS 304.20-040 to delete provision prohibiting use of credit history by auto insurers; clarifies that auto insurance policies are subject to the provisions of KRS 304.20-042 that prohibit use of credit history.
S.B. 12
Creates a new section of Subtitle 13 of KRS Chapter 304 to prohibit an insurer from basing rates, in whole or in part, on the use of insurance risk scores unless the method for calculating the score is filed in support of a rate filing with the commissioner of insurance and the commissioner determines that the score has a substantial relationship to risk of loss; provide that the method for calculating the score is not open to public inspection.
 Louisiana H.B. 53
Provides that the use of credit scoring for automobile and homeowners insurance is an unfair trade practice.
H.B. 58
Prohibits the use of credit reports or credit scoring for automobile insurance.
H.B. 118
Provides that the use of credit scoring for automobile and homeowners insurance is an unfair trade practice.
H.B. 399
Limits the use of credit information by insurance companies for the issuance, denial, cancellation, and nonrenewal of personal insurance, including homeowners and automobile insurance.
H.B. 1107
Limits the use of credit scoring by insurance companies for private passenger and homeowner’s insurance.
H.B. 1448
Signed by governor 7/7/03, Act 1256
Relates to the use of credit information for personal insurance; provides for requirements and restrictions; to provide for corrections; provides for notification; to provide for filings; provides for indemnification; provides for applicability.
S.B. 206
Withdrawn
Prohibits use of credit information in issuing or renewing automobile policies or when determining premiums.
S.B. 391
Regulates the use of credit information for individually underwritten policies for personal, family, or household use, prohibits insurers who use credit information to underwrite or rate risks from considering income, gender, address, zip code, ethnic group, religion, marital status, or nationality of the consumer in calculating insurance scores.
 Maine L.D. 470
Signed by governor 5/19/03, Chapter 223
Prohibits an insurance company authorized to transact automobile or homeowners’ insurance in this state from making underwriting and rating decisions based solely on information contained in consumer credit reports.  Prohibits an insurer from using an insurance score that is calculated using income, gender, address, zip code, ethnic group, religion, marital status or nationality as a factor and from considering an absence of credit history or an inability to determine a credit history as a negative indicator on an insurance score.  An insurer may continue to use consumer credit reports in underwriting and rating decisions in conjunction with other relevant underwriting  criteria to the extent allowed under state and federal fair credit reporting laws.  Requires insurers to provide written notice to a consumer who is adversely affected by a credit report.  The notice must include the specific credit-based reasons for the adverse decision and contact information necessary to assist the consumer in appealing the insurer’s decision.
L.D. 615
Prohibits consumer reporting agencies from releasing information about a consumer in connection with any credit or insurance transaction without the consent of the consumer.
 Maryland S.B. 174
Withdrawn 3/12/03
Requires an insurer, with respect to homeowners and motor vehicle insurance, to obtain specified approval to use credit history to rate a risk based on specified credit history; prohibits an insurer, with respect to specified insurance, from using a specified factor on a specified credit history; requires a specified insurer to advise a specified applicant or insured about a specified credit history; prohibits an insurer from using specified factors in rating a specified policy.
S.B. 444
Repeals the limit of the actuarially justified surcharge on the rate applied to new policies of private passenger motor vehicle insurance for certain applicants; repealing a certain termination provision relating to certain private passenger motor vehicle insurance; and generally relating to the repeal of the use of credit history to apply a surcharge to certain motor vehicle insurance policies.
 Massachusetts S.B. 2093
Provides that insurance rates shall not be excessive, inadequate or unfairly discriminatory and shall not be based in part or in whole on the numerical credit rating score of a consumer or on any other credit rating.
 Michigan H.B. 4268
Prohibits premium discount insurance plans to be based on the lack of a credit history.
S.B. 191
Prohibits the use of credit ratings in premium discount plans or rates for property and casualty insurance.
S.B. 473
Prohibits premium discount insurance plans to be based on the lack of a credit history.
S.B. 884
Regulates the practice of credit scoring in insurance.
 Minnesota H.F. 76
Prohibits credit scoring for automobile and homeowner’s insurance.
H.F. 946
Became law without governor’s signature 5/22/03, Chapter 74
S.F. 776
Regulates the insurance guaranty association; regulates the collection and use of certain insurance information.
 Missouri H.B. 259
Expands the restrictions on the use of credit history by insurance companies so that the restrictions apply to all types of insurance.  Current law limits the use of a person’s credit history only in automobile insurance.
S.B. 670
Prohibits a consumer reporting agency from determining the credit risk score of a resident of this state by the number of inquiries posted on a consumer’s credit files.  Any consumer who receives a credit risk score in violation of this act shall have the right to bring a civil action and seek injunctive relief.  Authorizes the attorney general to prosecute civil and criminal actions authorized by this section.
 Montana H.B. 184
Died in committee 4/26/03
Regulates the use of credit histories or credit scores by insurers; provides definitions; provides the state auditor with rulemaking authority to oversee the use of credit histories and credit scores; provides that the use of credit histories and credit scores applies to personal insurance; provides for notice to consumers with respect to the use of credit histories or credit scores; provides for corrections to erroneous credit histories or credit scores; requires recordkeeping by insurers; providing for indemnification of insurance producers.
H.B. 332
Missed deadline for general bill transmittal 2/28/03
Prohibits an insurer writing automobile or homeowner’s 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.
S.B. 349
Adopts a model act regarding the use of credit information in personal insurance; provides the purpose, scope, and definitions for the act; establishes criteria for the use of credit information in insurance underwriting; provides for dispute resolution and error correction; provides for notice to consumers of the use of credit information and adverse action based on the use of credit information; requires insurers to file their credit scoring models with the commissioner of insurance; provides for the indemnification of insurance producers using scoring information; prohibits consumer reporting agencies from providing or selling certain data pertaining to a consumer’s credit.
 Nebraska L.B. 487
Signed by governor 4/16/03
Adopts the model act regarding Use of Credit Information in Personal Insurance.
L.B. 693
Indefinitely postponed 2/19/03
Prohibits insurance discrimination based upon credit history.
 Nevada A.B. 194
Prohibits an insurer from using information included in the consumer credit report of an applicant or policyholder as a basis for making certain determinations regarding policies of insurance.
S.B. 129
Requires certain insurers that make adverse underwriting decisions based on consumer reports, credit history or insurance scores to follow certain procedures; requires those insurers to provide notice to the individuals and to reconsider the adverse underwriting decisions in certain circumstances.
S.B. 319
Signed by governor 6/10/03, Chapter 455
Restricts the use by an insurer of information included in the consumer credit report of an applicant or policyholder as a basis for making certain determinations and taking certain actions regarding policies of insurance, and provides for related procedures, duties, restrictions and exceptions; revises the membership of certain boards; provides that any refund of an assessment by the Division of Industrial Relations of the Department of Business and Industry must include payment for interest earned; provides that hearing officers and appeals officers shall designate the location of certain hearings; requires the commissioner of Insurance to conduct a study relating to the Investments of Insurers Model Act adopted by the National Association of Insurance Commissioners; requires the commissioner to prepare and submit to the governor and the Legislature a report concerning certain matters relating to the use of credit information in making decisions related to insurance.
 New Hampshire H.B. 557
Prohibits insurers from charging higher rates or canceling a homeowner’s insurance policy based on the number of claims submitted by such homeowner.  Prohibits mold-based claims under homeowner’s insurance policies.  Prohibits motor vehicle insurers from using credit information for underwriting purposes.
 New Mexico H.B. 598
Prohibits against using an insured’s credit rating to increase the rate or cancel a policy for motor vehicle insurance or homeowner’s insurance.
S.B. 325
Prohibits against charging an increased premium because of receipt of an unsatisfactory credit report on an insured and prohibits against canceling a policy because of the receipt of an unsatisfactory credit report on the insured.
 New York A.B. 2661
Provides that no insurer shall take into consideration or include in any calculation or formula for the making of homeowner’s insurance rates, the credit history of any person, nor shall any person be denied homeowners’ insurance as a result of such credit history.
A.B. 4730
Provides that the term defined violation shall mean the utilization by an insurer of credit information relating to a potential insured in determining the premium to be charged such insured.
A.B. 4754
S.B. 5618
Enacts provisions relating to the use of credit information by personal line insurers and affiliates; defines terms; provides for certain notification, dispute resolutions and error correction procedures; requires filing by insurers of scoring models.
A.B. 6281
Prohibits insurance companies from refusing to issue a motor vehicle liability insurance policy or renew an existing policy to any person solely or in part based on the credit history of the named insured or applicant.
S.B. 2728
Prohibits insurers from determining premiums or rates for, and making determinations on cancellations, denial or nonrenewals of insurance policies based upon the credit history of a consumer; provides that violations shall constitute unfair claim settlement practices.
S.B. 3186
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.
 North Carolina H.B. 596
Prohibits insurers from basing standards or rating plans for private passenger motor vehicles on the credit history or rating of persons insured.
S.B. 771
Signed by governor 6/19/03, Chapter 216
Prohibits the use of a person’s credit history as a sole basis for terminating insurance coverage or subjecting a policy to consent to rate.
 North Dakota H.B. 1260
Signed by governor 4/4/03
Relates to use of credit information in personal insurance.
S.B. 1290
Relates to use of credit information for property and casualty insurance and automobile insurance.
 Ohio S.B. 48
Prohibits an insurer’s use of a credit history or credit score in fixing a premium rate for, or the terms and conditions of, an insurance policy, or in determining whether to issue, continue, or renew an insurance policy.
 Oklahoma H.B. 1629
Prohibits the use of credit history in computation of premiums on certain insurance policies; authorizes the insurance commissioner to take specified actions for certain violations by insurers.
H.B. 1659
Prohibits the use of credit history in computation of premiums on certain insurance policies; authorizes the insurance commissioner to take specified actions for certain violations by insurers.
H.B. 1751
Creates the Use of Credit Information in Personal Insurance Act.
S.B. 539
Signed by governor 6/24/03, Chapter 127
Creates the Use of Credit Information in Personal Insurance Act.
S.B. 684
Prohibits insurers from certain actions based on specified information.
 Oregon S.B. 260
Signed by governor 9/22/03, Chapter 788
Requires insurer or agent to provide consumer with specific reasons for adverse underwriting decision when decision was based in whole or in part on credit history or insurance score.  Applies to insurer or agent making initial adverse underwriting decision.  Prohibits insurer from canceling or nonrenewing personal insurance in effect for more than 60 days based on consumer’s credit history or insurance score.  Allows insurer to decline coverage of personal insurance in initial underwriting decision based on consumer’s credit history in combination with other substantive factors.  Requires insurer using credit history or insurance score to file scoring model with director of Department of Consumer and Business Services.  Prohibits insurer from using credit history or insurance score to rerate policy at renewal.
S.B. 280
Establishes requirements for use of credit history in personal insurance underwriting and rating. Requires director of Department of Consumer and Business Services to report to Seventy-third Legislative Assembly on use of credit history for personal insurance.
S.B. 314
Prohibits an insurer from using the credit history or insurance score of a consumer applying for or renewing personal property or casualty insurance in determining eligibility for insurance coverage.
S.B. 484
Establishes requirements for use of a credit history in determining eligibility for personal insurance.  Prohibits the use of a credit history to determine personal insurance premiums or rates.
 Pennsylvania H.B. 701
Prohibits canceling or denying motor vehicle insurance coverage based solely on information obtained from a credit rating, credit history, or credit scoring model.  Prohibits increasing the rate of a person’s motor vehicle insurance coverage on the basis of a lack of credit history.
H.B. 1075
Provides for use of credit history of insureds; and further provides for penalties imposed by Insurance Department.
H.B. 2141
Relates to the use of credit information by carriers of personal lines insurance.
S.B. 198
Provides for the use of credit history of insureds; and further provides for penalties imposed by Insurance Department.
S.B. 331
Provides for the use of credit history of insureds; and further provides for penalties imposed by Insurance Department.
S.B. 336
Prohibits the use of credit scoring in insurance.
S.B. 337
Creates the Credit Scoring Prohibition Act.
S.B. 942
Provides for the use of credit information in personal lines insurance underwriting, for limitations on the use of credit information, for dispute resolution and error correction, for notification and reunderwriting requirements, for adverse action notification and for violations.
 Rhode Island H.B. 5362
Became law without governor’s signature 7/17/03, Chapter 316
Prevents insurance carriers from including certain credit information in deciding to provide coverage.
H.B. 5709
Prohibits the use of credit reports in connection with a consumer’s application.
S.B. 137
Became law without governor’s signature 7/17/03, Chapter 370
Prevents insurance carriers from including certain credit information in deciding to provide coverage and provides that should a customer’s credit score change as a result of an updated credit report, any decrease or increase in rates must be done at renewal.
 South Carolina S.B. 49
Prohibits an insurance company from considering an individual’s credit rating in determining an individual’s insurance rate for any line of insurance.
 Tennessee H.B. 22
S.B. 1616
Prohibits insurance company doing business in this state from charging higher premium than would otherwise be charged, or canceling, nonrenewing or declining to issue property or casualty policy for personal, family or household purposes based on individual’s credit rating or history.
H.B. 284
Withdrawn 3/3/03
S.B. 122
Prohibits homeowners insurance premium amounts to be tied to credit report information.
H.B. 711
S.B. 638
Prohibits insurance companies from using credit scores to deny coverage or escalate cost of premiums.
 Texas H.B. 45
Relates to the use of certain insurance underwriting guidelines based on credit history; provides penalties.
H.B. 81
Relates to a prohibition of certain underwriting decisions based on credit reports; provides a penalty.
H.B. 115
Relates to the use of credit scoring in underwriting certain lines of insurance coverage; provides a penalty.
H.B. 259
Relates to the use of certain insurance underwriting guidelines based on credit scores; provides penalties.
H.B. 265
Relates to the use of credit scoring in the underwriting and rating of personal automobile and residential property insurance.
H.B. 331
Relates to credit scoring in underwriting and rating certain consumer lines of insurance coverage; provides a penalty.
H.B. 600
S.B. 400
Relates to the regulation and reform of certain lines of insurance; provides a penalty.
H.B. 639
S.B. 310
Signed by governor 2/25/03
Requires an insurer to file, in a format specified by the commissioner, including an electronic format, all residential property insurance rates and supporting information with the commissioner in accordance with the requirements determined by the commissioner under this article.  Requires the insurer to file, in a format specified by the commissioner, including an electronic format, certain information relating to insurance rates, underwriting guidelines, credit scoring, investments, costs, and modeling.
H.B. 696
Relates to the prohibition of the use of credit reports in certain insurance underwriting decisions; provides penalties.
H.B. 748
S.B. 14
Signed by governor 6/11/03
Regulates the use of credit scoring through specified restrictions, disclosure requirements, filing of credit models, and required appeal procedures.  Restricts the use of credit information by insurers including prohibitions on (1) using disputed credit information subject to a pending dispute, medical bill collection information,  and number of insurance inquiries or non-consumer-initiated credit inquiries; (2) making a determination in whole or in part on the fact that a person has little or no credit history or on a person’s ownership or possession of a particular type of credit card, charge card, or debit card; (3) using credit information that is arbitrary, capricious, or unfairly discriminatory; (4) using the race, color, religion, or national origin of an insured or applicant; and (5) using the gender of an insured or applicant.  Requires insurers to file credit scoring models with the insurance department; such models are subject to disclosure under the public information act.  Prohibits consumer reporting agencies, with certain exceptions, from providing or selling data or lists that include any information submitted in conjunction with an insurance inquiry about a consumer’s credit information or a request for a credit report or insurance score.  Requires an insurer to indemnify, defend, and hold its agents harmless from and against all liability, fees, and costs that arise out of or relate to the actions, errors, or omissions of an agent who obtains or uses credit information or insurance scores for the insurer if the agent follows the instructions of or procedures established by the insurer and complies with applicable law or rule.
H.B. 870
S.B. 99
Relates to prohibiting the use of an individual’s credit history or credit score in underwriting or determining premiums for certain consumer lines of insurance; provides a penalty.
H.B. 920
Relates to the use of credit scoring in certain personal lines of insurance.
H.B. 2467
Relates to the use of credit scoring in certain personal lines of insurance.
S.B. 91
Relates to credit scoring in underwriting certain consumer lines of insurance coverage; provides a penalty.
S.B. 130
Relates to the use of credit scoring by insurers of residential properties and personal automobiles; provides a civil penalty.
 Vermont H.B. 186
Prohibits unfair discrimination by insurers on the basis of credit history.
 Virginia H.B. 2535
Signed by governor 3/18/03, Chapter 543
S.B. 1284
Signed by governor 3/18/05, Chapter 553
Prohibits insurers from nonrenewing homeowners, renters, or motor vehicle insurance policies based on credit information contained in a consumer report.  If credit information is used in part as the basis of nonrenewal, the report must have been procured within 120 days from the date of the nonrenewal.  The measure also establishes requirements concerning the use of credit information and credit scores for underwriting, tier placement, or rating purposes with respect to such insurance policies.
H.B. 2753
Withdrawn from further consideration 1/30/03
Sets forth specific criteria for insurers who use consumer credit information to underwrite risks in motor vehicle insurance and fire insurance policies.  Insurers are prohibited from denying, cancelling, or nonrenewing a policy solely based on credit information, basing an insured’s rates solely upon credit information, or considering the absence of credit information in underwriting. Insurers that use credit information in underwriting are required to update an insured’s credit information every 36 months.  If an insurer uses credit information in underwriting, it must disclose so on the insurance application.  If an insurer takes an adverse action based upon credit information, the insurer must notify the consumer and explain the reason for the action in specific terms.  Insurers are required to file their credit scoring models or other scoring processes with the Bureau of Insurance.
 West Virginia S.B. 376
Relates to declination of automobile liability insurance and homeowner’s insurance solely based on adverse credit reports generally; and requires certain carriers to provide counseling and information to consumers if policies are rerated using credit scoring.
 Wisconsin A.B. 278
Failed to pass pursuant to Senate Joint Resolution 1 3/31/04
Prohibits an insurer from considering information in an individual’s credit report for purposes of issuing or renewing motor vehicle or property insurance, including renter’s and homeowner’s insurance, or setting premiums for motor vehicle or property insurance.  Prohibits a rating plan for motor vehicle or property insurance from using information in an individual’s credit report as a rating factor.
 Wyoming S.F. 81
Signed by governor 3/3/03, Chapter 102
Authorizes rules governing and restricting the use of credit scoring in underwriting policies.

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