Full Text of HB0418 96th General Assembly
HB0418ham001 96TH GENERAL ASSEMBLY
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Executive Committee
Filed: 2/19/2009
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LRB096 07541 MJR 21028 a |
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| AMENDMENT TO HOUSE BILL 418
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| AMENDMENT NO. ______. Amend House Bill 418 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Use of Credit Information in Personal | 5 |
| 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 | 8 |
| to do business
in this State that uses credit information to | 9 |
| underwrite or rate risks shall
not:
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| (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.
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| (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
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| prohibited by item (1). An insurer shall not be considered | 2 |
| to have denied,
cancelled, or nonrenewed a policy if | 3 |
| coverage is available through an
affiliate. If an insurer | 4 |
| denies, cancels, or does not renew a policy of personal | 5 |
| insurance based on credit information, it must provide the | 6 |
| affected party with an explanation for the insurer's action | 7 |
| and an opportunity for the affected party to explain its | 8 |
| credit information.
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| (3) Base an insured's renewal rates for personal | 10 |
| insurance solely upon
credit information, without | 11 |
| consideration of any other applicable factor
independent | 12 |
| of credit information. An insurer shall not be considered | 13 |
| to
have based rates solely on credit information if | 14 |
| coverage is available in a
different tier of the same | 15 |
| insurer.
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| (4) Take an adverse action against a consumer solely | 17 |
| because he or she
does not have a credit card account, | 18 |
| without consideration of any other
applicable factor | 19 |
| independent of credit information.
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| (5) Consider an absence of credit information or an | 21 |
| inability to calculate
an insurance score in underwriting | 22 |
| or rating personal insurance, unless the
insurer does one | 23 |
| 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 | 26 |
| such
an absence or inability relates to the risk for |
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| the insurer and submits a
filing certification form | 2 |
| 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 | 5 |
| insured had neutral
credit information, as defined by | 6 |
| the insurer.
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| (C) Excludes the use of credit information as a | 8 |
| factor and uses only
other underwriting criteria.
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| (6) Take an adverse action against a consumer based on | 10 |
| credit
information, unless an insurer obtains and uses a | 11 |
| credit report issued or an
insurance score calculated | 12 |
| within 90 days from the date the policy is first
written or | 13 |
| renewal is issued.
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| (7) Use credit information unless not later than every | 15 |
| 36 months
following the last time that the insurer obtained | 16 |
| current credit information
for the insured, the insurer | 17 |
| recalculates the insurance score or obtains an
updated | 18 |
| credit report. Regardless of the other requirements of this | 19 |
| Section:
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| (A) At annual renewal, upon the request of a | 21 |
| consumer or the consumer's
agent, the insurer shall | 22 |
| re-underwrite and re-rate the policy based upon a
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| current credit report or insurance score. An insurer | 24 |
| need not recalculate the
insurance score or obtain the | 25 |
| updated credit report of a consumer more
frequently | 26 |
| than once in a 12-month period.
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| (B) The insurer shall have the discretion to obtain | 2 |
| current credit
information upon any renewal before the | 3 |
| expiration of 36 months, if
consistent with its | 4 |
| underwriting guidelines.
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| (C) An insurer is not required to obtain current | 6 |
| credit information for
an insured, despite the | 7 |
| 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 | 10 |
| otherwise filed with
the Department.
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| (b) The insured is in the most | 12 |
| favorably-priced tier of the insurer,
within a | 13 |
| group of affiliated insurers. However, the insurer | 14 |
| shall have the
discretion to order credit | 15 |
| information, if consistent with its underwriting
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| guidelines.
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| (c) Credit was not used for underwriting or | 18 |
| rating the insured when
the policy was initially | 19 |
| written. However, the insurer shall have the
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| discretion to use credit for underwriting or | 21 |
| rating the insured upon renewal,
if consistent | 22 |
| with its underwriting guidelines.
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| (d) The insurer re-evaluates the insured | 24 |
| beginning no later than 36
months after inception | 25 |
| and thereafter based upon other underwriting or | 26 |
| rating
factors, excluding credit information.
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| (8) Use the following as a negative factor in any | 2 |
| insurance scoring
methodology or in reviewing credit | 3 |
| information for the purpose of underwriting
or rating a | 4 |
| policy of personal insurance:
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| (A) Credit inquiries not initiated by the consumer | 6 |
| or inquiries
requested by the consumer for his or her | 7 |
| own credit information.
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| (B) Inquiries relating to insurance coverage, if | 9 |
| so identified on a
consumer's credit report.
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| (C) Collection accounts with a medical industry | 11 |
| code, if so identified
on the consumer's credit report.
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| (D) Multiple lender inquiries, if coded by the | 13 |
| consumer reporting agency
on the consumer's credit | 14 |
| report as being from the home mortgage industry and
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| made within 30 days of one another, unless only one | 16 |
| inquiry is considered.
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| (E) Multiple lender inquiries, if coded by the | 18 |
| consumer reporting agency
on the consumer's credit | 19 |
| report as being from the automobile lending industry
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| and made within 30 days of one another, unless only one | 21 |
| 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 10. The Public Utilities Act is amended by adding | 24 |
| Section 8-101.5 as follows: |
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| (220 ILCS 5/8-101.5 new) | 2 |
| Sec. 8-101.5. Use of credit information of prospective and | 3 |
| existing customers. A public utility may not deny, cancel, or | 4 |
| nonrenew utility service solely on
the basis of credit | 5 |
| information of prospective or existing customers. If a public | 6 |
| utility denies, cancels, or does not renew service based on | 7 |
| credit information, it must provide the affected party with an | 8 |
| explanation for the public utility's action and an opportunity | 9 |
| for the affected party to explain its credit information.
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| Section 99. Effective date. This Act takes effect upon | 11 |
| becoming law.".
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