Full Text of HB0265 94th General Assembly
HB0265 94TH GENERAL ASSEMBLY
|
|
|
94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB0265
Introduced 1/18/2005, by Rep. John J. Millner SYNOPSIS AS INTRODUCED: |
|
|
Amends the Use of Credit Information in Personal Insurance Act. Prohibits insurers from using the credit information or the credit report of a consumer when issuing a policy of automobile insurance.
|
| |
|
|
A BILL FOR
|
|
|
|
|
HB0265 |
|
LRB094 05163 LJB 35204 b |
|
| 1 |
| AN ACT concerning insurance.
| 2 |
| Be it enacted by the People of the State of Illinois,
| 3 |
| represented in the General Assembly:
| 4 |
| Section 5. The Use of Credit Information in Personal | 5 |
| Insurance Act is amended by changing Section 20 as follows:
| 6 |
| (215 ILCS 157/20)
| 7 |
| Sec. 20. Use of credit information. An insurer authorized | 8 |
| to do business
in this State that uses credit information to | 9 |
| underwrite or rate risks shall
not:
| 10 |
| (1) Use an insurance score that is calculated using | 11 |
| income, gender,
address, ethnic group, religion, marital | 12 |
| status, or nationality of the consumer
as a factor.
| 13 |
| (2) Deny, cancel, or nonrenew a policy of personal | 14 |
| insurance solely on
the basis of credit information, | 15 |
| without consideration of any other applicable
underwriting | 16 |
| factor independent of credit information and not expressly
| 17 |
| prohibited by item (1). An insurer shall not be considered | 18 |
| to have denied,
cancelled, or nonrenewed a policy if | 19 |
| coverage is available through an
affiliate.
| 20 |
| (3) Base an insured's renewal rates for personal | 21 |
| insurance solely upon
credit information, without | 22 |
| consideration of any other applicable factor
independent | 23 |
| of credit information. An insurer shall not be considered | 24 |
| to
have based rates solely on credit information if | 25 |
| coverage is available in a
different tier of the same | 26 |
| insurer.
| 27 |
| (4) Take an adverse action against a consumer solely | 28 |
| because he or she
does not have a credit card account, | 29 |
| without consideration of any other
applicable factor | 30 |
| independent of credit information.
| 31 |
| (5) Consider an absence of credit information or an | 32 |
| inability to calculate
an insurance score in underwriting |
|
|
|
HB0265 |
- 2 - |
LRB094 05163 LJB 35204 b |
|
| 1 |
| or rating personal insurance, unless the
insurer does one | 2 |
| of the following:
| 3 |
| (A) Treats the consumer as otherwise filed with the
| 4 |
| Department, if the insurer presents information that | 5 |
| such
an absence or inability relates to the risk for | 6 |
| the insurer and submits a
filing certification form | 7 |
| signed by an officer for the insurer certifying that
| 8 |
| such treatment is actuarially justified.
| 9 |
| (B) Treats the consumer as if the applicant or | 10 |
| insured had neutral
credit information, as defined by | 11 |
| the insurer.
| 12 |
| (C) Excludes the use of credit information as a | 13 |
| factor and uses only
other underwriting criteria.
| 14 |
| (6) Take an adverse action against a consumer based on | 15 |
| credit
information, unless an insurer obtains and uses a | 16 |
| credit report issued or an
insurance score calculated | 17 |
| within 90 days from the date the policy is first
written or | 18 |
| renewal is issued.
| 19 |
| (7) Use credit information unless not later than every | 20 |
| 36 months
following the last time that the insurer obtained | 21 |
| current credit information
for the insured, the insurer | 22 |
| recalculates the insurance score or obtains an
updated | 23 |
| credit report. Regardless of the other requirements of this | 24 |
| Section:
| 25 |
| (A) At annual renewal, upon the request of a | 26 |
| consumer or the consumer's
agent, the insurer shall | 27 |
| re-underwrite and re-rate the policy based upon a
| 28 |
| current credit report or insurance score. An insurer | 29 |
| need not recalculate the
insurance score or obtain the | 30 |
| updated credit report of a consumer more
frequently | 31 |
| than once in a 12-month period.
| 32 |
| (B) The insurer shall have the discretion to obtain | 33 |
| current credit
information upon any renewal before the | 34 |
| expiration of 36 months, if
consistent with its | 35 |
| underwriting guidelines.
| 36 |
| (C) An insurer is not required to obtain current |
|
|
|
HB0265 |
- 3 - |
LRB094 05163 LJB 35204 b |
|
| 1 |
| credit information for
an insured, despite the | 2 |
| requirements of subitem (A) of item (7) of this Section
| 3 |
| if one of the following applies:
| 4 |
| (a) The insurer is treating the consumer as | 5 |
| otherwise filed with
the Department.
| 6 |
| (b) The insured is in the most | 7 |
| favorably-priced tier of the insurer,
within a | 8 |
| group of affiliated insurers. However, the insurer | 9 |
| shall have the
discretion to order credit | 10 |
| information, if consistent with its underwriting
| 11 |
| guidelines.
| 12 |
| (c) Credit was not used for underwriting or | 13 |
| rating the insured when
the policy was initially | 14 |
| written. However, the insurer shall have the
| 15 |
| discretion to use credit for underwriting or | 16 |
| rating the insured upon renewal,
if consistent | 17 |
| with its underwriting guidelines.
| 18 |
| (d) The insurer re-evaluates the insured | 19 |
| beginning no later than 36
months after inception | 20 |
| and thereafter based upon other underwriting or | 21 |
| rating
factors, excluding credit information.
| 22 |
| (8) Use the following as a negative factor in any | 23 |
| insurance scoring
methodology or in reviewing credit | 24 |
| information for the purpose of underwriting
or rating a | 25 |
| policy of personal insurance:
| 26 |
| (A) Credit inquiries not initiated by the consumer | 27 |
| or inquiries
requested by the consumer for his or her | 28 |
| own credit information.
| 29 |
| (B) Inquiries relating to insurance coverage, if | 30 |
| so identified on a
consumer's credit report.
| 31 |
| (C) Collection accounts with a medical industry | 32 |
| code, if so identified
on the consumer's credit report.
| 33 |
| (D) Multiple lender inquiries, if coded by the | 34 |
| consumer reporting agency
on the consumer's credit | 35 |
| report as being from the home mortgage industry and
| 36 |
| made within 30 days of one another, unless only one |
|
|
|
HB0265 |
- 4 - |
LRB094 05163 LJB 35204 b |
|
| 1 |
| inquiry is considered.
| 2 |
| (E) Multiple lender inquiries, if coded by the | 3 |
| consumer reporting agency
on the consumer's credit | 4 |
| report as being from the automobile lending industry
| 5 |
| and made within 30 days of one another, unless only one | 6 |
| inquiry is considered. | 7 |
| (9) Use the credit information or credit report of a | 8 |
| consumer in any manner when issuing a "policy of automobile | 9 |
| insurance" as defined in paragraph (a) of Section 143.13 of | 10 |
| the Illinois Insurance Code.
| 11 |
| (Source: P.A. 93-114, eff. 10-1-03; 93-477, eff. 10-1-03.)
|
|