Full Text of HB0420 96th General Assembly
HB0420 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB0420
Introduced 2/3/2009, by Rep. Monique D. Davis SYNOPSIS AS INTRODUCED: |
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215 ILCS 5/155.22b |
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215 ILCS 157/Act rep. |
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Amends the Illinois Insurance Code. Provides that no company issuing a policy of life or accident and health or personal insurance may use a consumer's credit information for the purpose of rating or underwriting any such policy. Repeals the Use of Credit Information in Personal Insurance Act. Makes other changes.
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A BILL FOR
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HB0420 |
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LRB096 07536 RPM 17631 b |
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| AN ACT concerning insurance.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Insurance Code is amended by | 5 |
| changing Section 155.22b as follows:
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| (215 ILCS 5/155.22b)
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| Sec. 155.22b. Rating, claims handling, and underwriting | 8 |
| decisions.
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| (a) No company issuing a policy of property and casualty | 10 |
| insurance may use
the fact that an applicant or insured | 11 |
| incurred
bodily
injury as a result of a battery
or other | 12 |
| violent act committed against him or her by a spouse or person | 13 |
| in
the same household as a
sole reason for a rating, | 14 |
| underwriting, or claims handling decision.
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| (b) If a policy excludes property coverage for intentional | 16 |
| acts, the
insurer may not deny payment to an innocent | 17 |
| co-insured who did not cooperate in
or contribute to the | 18 |
| creation of the loss if the loss arose out of a pattern of
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| criminal domestic violence and the perpetrator of the loss is | 20 |
| criminally
prosecuted for the act causing the loss. Payment to | 21 |
| the innocent co-insured
may be limited to his or her ownership | 22 |
| interest in the property as reduced by
any payments to a | 23 |
| mortgagor or other secured interest.
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HB0420 |
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LRB096 07536 RPM 17631 b |
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| (c) No company issuing a policy of life or accident and | 2 |
| health or personal insurance may use a consumer's credit | 3 |
| information or credit score for the purpose of rating or | 4 |
| underwriting any such policy. For the purpose of this | 5 |
| subsection (c): | 6 |
| "Consumer" means an insured or an applicant for an | 7 |
| insurance policy whose credit information is used or whose | 8 |
| insurance score is calculated in the underwriting or rating of | 9 |
| an insurance policy. | 10 |
| "Credit information" means any credit-related information | 11 |
| derived from a credit report, found on a credit report itself, | 12 |
| or provided on an application for insurance. Information that | 13 |
| is not credit-related shall not be considered credit | 14 |
| information, regardless of whether it is contained in a credit | 15 |
| report or in an application or is used to calculate an | 16 |
| insurance score. | 17 |
| "Credit report" means any written, oral, or other | 18 |
| communication of information by a consumer reporting agency | 19 |
| bearing on a consumer's credit worthiness, credit standing, or | 20 |
| credit capacity, that is used or expected to be used or | 21 |
| collected in whole or in part for the purpose of serving as a | 22 |
| factor to determine insurance premiums, eligibility for | 23 |
| coverage, or tier placement. | 24 |
| "Insurance score" means a number or rating that is derived | 25 |
| from an algorithm, computer application, model, or other | 26 |
| process that is based in whole or in part on credit information |
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HB0420 |
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LRB096 07536 RPM 17631 b |
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| for the purposes of predicting the future insurance loss | 2 |
| exposure of an individual applicant or insured. | 3 |
| "Personal insurance" means private passenger automobile, | 4 |
| homeowners, motorcycle, mobile-homeowners and non-commercial | 5 |
| dwelling fire insurance policies, and boat, personal | 6 |
| watercraft, snowmobile, and recreational vehicle polices. Such | 7 |
| policies must be individually underwritten for personal, | 8 |
| family, or household use. | 9 |
| (Source: P.A. 93-200, eff. 1-1-04.)
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| (215 ILCS 157/Act rep.)
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| Section 10. The Use of Credit Information in Personal | 12 |
| Insurance Act is repealed.
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