093_HB3661sam006
LRB093 09245 LRD 15773 a
1 AMENDMENT TO HOUSE BILL 3661
2 AMENDMENT NO. . Amend House Bill 3661, AS AMENDED,
3 by replacing all of Section 99 with the following:
4 "Section 95. If and only if House Bill 1640 of the 93rd
5 General Assembly becomes law in the form it passed the House,
6 the Use of Credit Information in Personal Insurance Act is
7 amended by changing Section 20 as follows:
8 (093 HB 1640 eng, Sec. 20)
9 Sec. 20. Use of credit information. An insurer
10 authorized to do business in this State that uses credit
11 information to underwrite or rate risks shall not:
12 (1) Use an insurance score that is calculated using
13 income, gender, address, ethnic group, religion, marital
14 status, or nationality of the consumer as a factor.
15 (2) Deny, cancel, or nonrenew a policy of personal
16 insurance solely on the basis of credit information,
17 without consideration of any other applicable
18 underwriting factor independent of credit information and
19 not expressly prohibited by item (1). An insurer shall
20 not be considered to have denied, cancelled, or
21 nonrenewed a policy if coverage is available through an
22 affiliate.
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1 (3) Base an insured's renewal rates for personal
2 insurance solely upon credit information, without
3 consideration of any other applicable factor independent
4 of credit information. An insurer shall not be
5 considered to have based rates solely on credit
6 information if coverage is available in a different tier
7 of the same insurer.
8 (4) Take an adverse action against a consumer
9 solely because he or she does not have a credit card
10 account, without consideration of any other applicable
11 factor independent of credit information.
12 (5) Consider an absence of credit information or an
13 inability to calculate an insurance score in underwriting
14 or rating personal insurance, unless the insurer does one
15 of the following:
16 (A) Treats the consumer as otherwise filed
17 with approved by the Department, if the insurer
18 presents information that such an absence or
19 inability relates to the risk for the insurer and
20 submits a filing certification form signed by an
21 officer for the insurer certifying that such
22 treatment is actuarially justified.
23 (B) Treats the consumer as if the applicant or
24 insured had neutral credit information, as defined
25 by the insurer.
26 (C) Excludes the use of credit information as
27 a factor and uses only other underwriting criteria.
28 (6) Take an adverse action against a consumer based
29 on credit information, unless an insurer obtains and uses
30 a credit report issued or an insurance score calculated
31 within 90 days from the date the policy is first written
32 or renewal is issued.
33 (7) Use credit information unless not later than
34 every 36 months following the last time that the insurer
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1 obtained current credit information for the insured, the
2 insurer recalculates the insurance score or obtains an
3 updated credit report. Regardless of the other
4 requirements of this Section:
5 (A) At annual renewal, upon the request of a
6 consumer or the consumer's agent, the insurer shall
7 re-underwrite and re-rate the policy based upon a
8 current credit report or insurance score. An insurer
9 need not recalculate the insurance score or obtain
10 the updated credit report of a consumer more
11 frequently than once in a 12-month period.
12 (B) The insurer shall have the discretion to
13 obtain current credit information upon any renewal
14 before the expiration of 36 months, if consistent
15 with its underwriting guidelines.
16 (C) An insurer is not required to obtain
17 current credit information for an insured, despite
18 the requirements of subitem (A) of item (7) of this
19 Section if one of the following applies:
20 (a) The insurer is treating the consumer
21 as otherwise filed with approved by the
22 Department.
23 (b) The insured is in the most
24 favorably-priced tier of the insurer, within a
25 group of affiliated insurers. However, the
26 insurer shall have the discretion to order
27 credit information, if consistent with its
28 underwriting guidelines.
29 (c) Credit was not used for underwriting
30 or rating the insured when the policy was
31 initially written. However, the insurer shall
32 have the discretion to use credit for
33 underwriting or rating the insured upon
34 renewal, if consistent with its underwriting
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1 guidelines.
2 (d) The insurer re-evaluates the insured
3 beginning no later than 36 months after
4 inception and thereafter based upon other
5 underwriting or rating factors, excluding
6 credit information.
7 (8) Use the following as a negative factor in any
8 insurance scoring methodology or in reviewing credit
9 information for the purpose of underwriting or rating a
10 policy of personal insurance:
11 (A) Credit inquiries not initiated by the
12 consumer or inquiries requested by the consumer for
13 his or her own credit information.
14 (B) Inquiries relating to insurance coverage,
15 if so identified on a consumer's credit report.
16 (C) Collection accounts with a medical
17 industry code, if so identified on the consumer's
18 credit report.
19 (D) Multiple lender inquiries, if coded by the
20 consumer reporting agency on the consumer's credit
21 report as being from the home mortgage industry and
22 made within 30 days of one another, unless only one
23 inquiry is considered.
24 (E) Multiple lender inquiries, if coded by the
25 consumer reporting agency on the consumer's credit
26 report as being from the automobile lending industry
27 and made within 30 days of one another, unless only
28 one inquiry is considered.
29 (Source: 093 HB 1640 eng, Sec. 20)
30 Section 99. Effective date. This Section and the
31 changes made to Sec. 143.17a of the Illinois Insurance Code
32 in Section 5 of this Act take effect upon becoming law.
33 Section 95 of this Act takes effect on October 1, 2003. The
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1 rest of this Act takes effect on the uniform effective date
2 provided by law.".