Full Text of HB0265 94th General Assembly
HB0265ham002 94TH GENERAL ASSEMBLY
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Rep. John J. Millner
Filed: 4/6/2005
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09400HB0265ham002 |
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LRB094 05163 LJB 44141 a |
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| AMENDMENT TO HOUSE BILL 265
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| AMENDMENT NO. ______. Amend House Bill 265, AS AMENDED, by | 3 |
| replacing everything after the enacting clause with the | 4 |
| following:
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| "Section 5. The Use of Credit Information in Personal | 6 |
| Insurance Act is amended by changing Section 20 as follows:
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| (215 ILCS 157/20)
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| Sec. 20. Use of credit information. An insurer authorized | 9 |
| to do business
in this State that uses credit information to | 10 |
| underwrite or rate risks shall
not:
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| (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.
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| (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
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| 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.
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| (3) Base an insured's renewal rates for personal | 22 |
| insurance solely upon
credit information, without | 23 |
| consideration of any other applicable factor
independent | 24 |
| of credit information. An insurer shall not be considered |
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LRB094 05163 LJB 44141 a |
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| to
have based rates solely on credit information if | 2 |
| coverage is available in a
different tier of the same | 3 |
| insurer.
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| (4) Take an adverse action against a consumer solely | 5 |
| because he or she
does not have a credit card account, | 6 |
| without consideration of any other
applicable factor | 7 |
| independent of credit information.
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| (5) Consider an absence of credit information or an | 9 |
| inability to calculate
an insurance score in underwriting | 10 |
| or rating personal insurance, unless the
insurer does one | 11 |
| of the following:
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| (A) Treats the consumer as otherwise filed with the
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| Department, if the insurer presents information that | 14 |
| such
an absence or inability relates to the risk for | 15 |
| the insurer and submits a
filing certification form | 16 |
| signed by an officer for the insurer certifying that
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| such treatment is actuarially justified.
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| (B) Treats the consumer as if the applicant or | 19 |
| insured had neutral
credit information, as defined by | 20 |
| the insurer.
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| (C) Excludes the use of credit information as a | 22 |
| factor and uses only
other underwriting criteria.
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| (6) Take an adverse action against a consumer based on | 24 |
| credit
information, unless an insurer obtains and uses a | 25 |
| credit report issued or an
insurance score calculated | 26 |
| within 90 days from the date the policy is first
written or | 27 |
| renewal is issued.
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| (7) Use credit information to re-underwrite or re-rate | 29 |
| renewal policies except as follows
unless not later than | 30 |
| every 36 months
following the last time that the insurer | 31 |
| obtained current credit information
for the insured, the | 32 |
| insurer recalculates the insurance score or obtains an
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| updated credit report. Regardless of the other | 34 |
| requirements of this Section :
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LRB094 05163 LJB 44141 a |
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| (A) At annual renewal, upon the request of a | 2 |
| consumer or the consumer's
agent that the consumer's | 3 |
| credit information be obtained by the insurer , the | 4 |
| insurer may
shall re-underwrite and re-rate the policy | 5 |
| based upon , but not solely based upon, a
current credit | 6 |
| report or insurance score so long as the use of the | 7 |
| credit report or insurance score is consistent with the | 8 |
| requirements of this Section . An insurer need not | 9 |
| recalculate the
insurance score or obtain the updated | 10 |
| credit report of a consumer more
frequently than once | 11 |
| in a 12-month period.
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| (B) (Blank).
The insurer shall have the discretion | 13 |
| to obtain current credit
information upon any renewal | 14 |
| before the expiration of 36 months, if
consistent with | 15 |
| its underwriting guidelines.
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| (C) (Blank).
An insurer is not required to obtain | 17 |
| current credit information for
an insured, despite the | 18 |
| requirements of subitem (A) of item (7) of this Section
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| if one of the following applies:
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| (a) The insurer is treating the consumer as | 21 |
| otherwise filed with
the Department.
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| (b) The insured is in the most | 23 |
| favorably-priced tier of the insurer,
within a | 24 |
| group of affiliated insurers. However, the insurer | 25 |
| shall have the
discretion to order credit | 26 |
| information, if consistent with its underwriting
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| guidelines.
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| (c) Credit was not used for underwriting or | 29 |
| rating the insured when
the policy was initially | 30 |
| written. However, the insurer shall have the
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| discretion to use credit for underwriting or | 32 |
| rating the insured upon renewal,
if consistent | 33 |
| with its underwriting guidelines.
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| (d) The insurer re-evaluates the insured |
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| beginning no later than 36
months after inception | 2 |
| and thereafter based upon other underwriting or | 3 |
| rating
factors, excluding credit information. | 4 |
| (D) At annual renewal, upon the request of a | 5 |
| consumer or the consumer's agent that the consumer's | 6 |
| credit information be obtained by the insurer, the | 7 |
| insurer may underwrite and rate the insurance policy as | 8 |
| new business based upon, but not solely based upon, a | 9 |
| current credit report or insurance score so long as the | 10 |
| use of the credit report or insurance score is | 11 |
| consistent with the requirements of this Section. An | 12 |
| insurer need not recalculate the insurance score or | 13 |
| obtain the updated credit report of a consumer more | 14 |
| frequently than once in a 12-month period.
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| (8) Use the following as a negative factor in any | 16 |
| insurance scoring
methodology or in reviewing credit | 17 |
| information for the purpose of underwriting
or rating a | 18 |
| policy of personal insurance:
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| (A) Credit inquiries not initiated by the consumer | 20 |
| or inquiries
requested by the consumer for his or her | 21 |
| own credit information.
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| (B) Inquiries relating to insurance coverage, if | 23 |
| so identified on a
consumer's credit report.
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| (C) Collection accounts with a medical industry | 25 |
| code, if so identified
on the consumer's credit report.
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| (D) Multiple lender inquiries, if coded by the | 27 |
| consumer reporting agency
on the consumer's credit | 28 |
| report as being from the home mortgage industry and
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| made within 30 days of one another, unless only one | 30 |
| inquiry is considered.
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| (E) Multiple lender inquiries, if coded by the | 32 |
| consumer reporting agency
on the consumer's credit | 33 |
| report as being from the automobile lending industry
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| and made within 30 days of one another, unless only one |
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| inquiry is considered.
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| (Source: P.A. 93-114, eff. 10-1-03; 93-477, eff. 10-1-03.)
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| Section 99. Effective date. This Act takes effect July 1, | 4 |
| 2006.".
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