Illinois General Assembly - Full Text of HB3567
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of HB3567  102nd General Assembly

HB3567 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3567

 

Introduced 2/22/2021, by Rep. David A. Welter

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 157/20

    Amends the Use of Credit Information in Personal Insurance Act to provide that an insurer authorized to do business in the State that uses credit information to underwrite or rate risks shall not use credit information in any way when setting personal auto insurance rates.


LRB102 13835 BMS 19186 b

 

 

A BILL FOR

 

HB3567LRB102 13835 BMS 19186 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use of Credit Information in Personal
5Insurance Act is amended by changing Section 20 as follows:
 
6    (215 ILCS 157/20)
7    Sec. 20. Use of credit information.
8    (a) An insurer authorized to do business in this State
9that uses credit information to underwrite or rate risks shall
10not:
11        (1) Use an insurance score that is calculated using
12    income, gender, address, ethnic group, religion, marital
13    status, or nationality of the consumer as a factor.
14        (2) Deny, cancel, or nonrenew a policy of personal
15    insurance solely on the basis of credit information,
16    without consideration of any other applicable underwriting
17    factor independent of credit information and not expressly
18    prohibited by item (1). An insurer shall not be considered
19    to have denied, cancelled, or nonrenewed a policy if
20    coverage is available through an affiliate. If an insurer
21    denies, cancels, or does not renew a policy of personal
22    insurance based on credit information, it must provide the
23    affected party with a notice as described in Section 35 of

 

 

HB3567- 2 -LRB102 13835 BMS 19186 b

1    this Act and an opportunity for the affected party to
2    explain its credit information under the procedures
3    outlined in Section 22 of this Act.
4        (3) Base an insured's renewal rates for personal
5    insurance solely upon credit information, without
6    consideration of any other applicable factor independent
7    of credit information. An insurer shall not be considered
8    to have based rates solely on credit information if
9    coverage is available in a different tier of the same
10    insurer.
11        (3.5) Use credit information in any way when setting
12    personal auto insurance rates.
13        (4) Take an adverse action against a consumer solely
14    because he or she does not have a credit card account,
15    without consideration of any other applicable factor
16    independent of credit information.
17        (5) Consider an absence of credit information or an
18    inability to calculate an insurance score in underwriting
19    or rating personal insurance, unless the insurer does one
20    of the following:
21            (A) Treats the consumer as otherwise filed with
22        the Department, if the insurer presents information
23        that such an absence or inability relates to the risk
24        for the insurer and submits a filing certification
25        form signed by an officer for the insurer certifying
26        that such treatment is actuarially justified.

 

 

HB3567- 3 -LRB102 13835 BMS 19186 b

1            (B) Treats the consumer as if the applicant or
2        insured had neutral credit information, as defined by
3        the insurer.
4            (C) Excludes the use of credit information as a
5        factor and uses only other underwriting criteria.
6        (6) Take an adverse action against a consumer based on
7    credit information, unless an insurer obtains and uses a
8    credit report issued or an insurance score calculated
9    within 90 days from the date the policy is first written or
10    renewal is issued.
11        (7) (Blank).
12        (8) Use the following as a negative factor in any
13    insurance scoring methodology or in reviewing credit
14    information for the purpose of underwriting or rating a
15    policy of personal insurance:
16            (A) Credit inquiries not initiated by the consumer
17        or inquiries requested by the consumer for his or her
18        own credit information.
19            (B) Inquiries relating to insurance coverage, if
20        so identified on a consumer's credit report.
21            (C) Collection accounts with a medical industry
22        code, if so identified on the consumer's credit
23        report.
24            (D) Multiple lender inquiries, if coded by the
25        consumer reporting agency on the consumer's credit
26        report as being from the home mortgage industry and

 

 

HB3567- 4 -LRB102 13835 BMS 19186 b

1        made within 30 days of one another, unless only one
2        inquiry is considered.
3            (E) Multiple lender inquiries, if coded by the
4        consumer reporting agency on the consumer's credit
5        report as being from the automobile lending industry
6        and made within 30 days of one another, unless only one
7        inquiry is considered.
8    (b) An insurer authorized to do business in this State
9that uses credit information to underwrite or rate risks
10shall, at annual renewal upon the request of an insured or an
11insured's agent, re-underwrite and re-rate the insured's
12personal insurance policy based on a current credit report or
13insurance score unless one of the following applies:
14        (1) The insurer's treatment of the consumer is
15    otherwise approved by the Department.
16        (2) The insured is in the most favorably priced tier
17    of the insurer, within a group of affiliated insurers.
18        (3) Credit information was not used for underwriting
19    or rating the insured when the personal insurance policy
20    was initially written.
21        (4) The insurer reevaluates the insured at least every
22    36 months after a personal insurance policy is issued
23    based on underwriting or rating factors other than credit
24    information.
25        (5) The insurer has recalculated an insurance score or
26    obtained an updated credit report of a consumer in the

 

 

HB3567- 5 -LRB102 13835 BMS 19186 b

1    previous 12-month period.
2An insurer that uses credit information to underwrite or rate
3risks may obtain current credit information upon the renewal
4of a personal insurance policy when renewal occurs more
5frequently than every 36 months if consistent with the
6insurer's underwriting guidelines.
7(Source: P.A. 96-560, eff. 8-18-09.)