Illinois General Assembly - Full Text of HB5140
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Full Text of HB5140  102nd General Assembly

HB5140 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5140

 

Introduced 1/27/2022, by Rep. Lamont J. Robinson, Jr.

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/143.26b new
215 ILCS 157/10

    Amends the Illinois Insurance Code. Provides that no insurer shall utilize, rate, or underwrite in whole or in part an applicant's or insured's education level, employment, trade, business, occupation or profession, or credit report or credit information to determine: whether to issue, deny, cancel, or nonrenew an automobile insurance policy; whether to renew an automobile insurance policy; the appropriate premium for an automobile insurance policy; the appropriate tier for an automobile insurance policy; or an insurance score for an applicant or insured. Defines terms. Amends the Use of Credit Information in Personal Insurance Act. Removes private passenger automobile insurance policies from the definition of "personal insurance". Effective immediately.


LRB102 25053 BMS 34312 b

 

 

A BILL FOR

 

HB5140LRB102 25053 BMS 34312 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 Illinois Insurance Code is amended by
5adding Section 143.26b as follows:
 
6    (215 ILCS 5/143.26b new)
7    Sec. 143.26b. Automobile insurance; prohibited use of
8credit information.
9    (a) As used in this Section:
10    "Applicant" means an individual who has applied to be
11covered by an automobile insurance policy with an insurer.
12    "Automobile insurance" means a contract of insurance
13issued or delivered in this State on a risk located or a
14resident in this State insuring against losses or liabilities
15arising out of the ownership, operation, or use of a motor
16vehicle predominantly used for non-business purposes if a
17natural person is the named insured under the policy of
18automobile insurance. The use or operation of a motor vehicle
19by a transportation network company driver in accordance with
20the Transportation Network Providers Act shall not be included
21in determining whether the motor vehicle is being used
22predominantly for non-business purposes.
23    "Credit information" means any credit-related information

 

 

HB5140- 2 -LRB102 25053 BMS 34312 b

1derived from a credit report, found on a credit report itself,
2or provided on an application for automobile insurance.
3"Credit information" does not include information that is not
4credit-related regardless of whether it is contained in a
5credit report or in an application or is used to calculate an
6insurance score.
7    "Credit report" means any written, oral, or other
8communication of information by a consumer reporting agency
9bearing on a consumer's credit worthiness, credit standing, or
10credit capacity that is used or expected to be used or
11collected in whole or in part for the purpose of serving as a
12factor to determine automobile insurance premiums, eligibility
13for coverage, or tier placement.
14    "Insurance score" means a number or rating that is derived
15from an algorithm, computer application, model, or other
16process for the purposes of predicting the future insurance
17loss exposure of an individual applicant or insured.
18    (b) No insurer shall utilize, rate, or underwrite in whole
19or in part an applicant's or insured's education level,
20employment, trade, business, occupation or profession, or
21credit report or credit information to determine:
22        (1) whether to issue, deny, cancel, or nonrenew an
23    automobile insurance policy;
24        (2) whether to renew an automobile insurance policy;
25        (3) the appropriate premium for an automobile
26    insurance policy;

 

 

HB5140- 3 -LRB102 25053 BMS 34312 b

1        (4) the appropriate tier for an automobile insurance
2    policy; or
3        (5) an insurance score for an applicant or insured.
 
4    Section 10. The Use of Credit Information in Personal
5Insurance Act is amended by changing Section 10 as follows:
 
6    (215 ILCS 157/10)
7    Sec. 10. Scope. This Act applies to personal insurance and
8not to commercial insurance. For purposes of this Act,
9"personal insurance" means private passenger automobile,
10homeowners, motorcycle, mobile-homeowners and non-commercial
11dwelling fire insurance policies, and boat, personal
12watercraft, snowmobile, and recreational vehicle policies.
13Such policies must be individually underwritten for personal,
14family, or household use. No other type of insurance shall be
15included as personal insurance for the purpose of this Act.
16(Source: P.A. 102-558, eff. 8-20-21.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.