House Sponsors: OSMOND-YARBROUGH-MAUTINO-MATHIAS-KENNER, O'BRIEN, MITCHELL,BILL AND SOMMER. Senate Sponsors: MADIGAN,R-NOLAND-WALSH,L-OBAMA-HENDON Short description: INS ADVERSE DECISION NOTICE Synopsis of Bill as introduced: Amends the Illinois Insurance Code. Provides that if an insurance company makes an adverse underwriting decision, the company must disclose the basis for the decision to the affected individual. Requires disclosure of information related to credit worthiness when the adverse underwriting decision is based upon a report of credit worthiness. Effective immediately. HOUSE AMENDMENT NO. 1. Replaces the substance of the bill. Provides that an insurer may base underwriting decisions on credit worthiness. Provides that the decisions may not be made in a manner that constitutes an unfair or deceptive practice. HOUSE AMENDMENT NO. 2. Adds reference to: 215 ILCS 5/1011 from Ch. 73, par. 1065.711 Replaces everything after the enacting clause. Amends the Illinois Insurance Code. Prohibits the use of credit criteria or scoring as the sole determinant in making an underwriting decision. Prohibits the use of credit information in an unlawfully discriminatory manner. Requires insurers to disclose the source of credit information that forms the basis of an adverse underwriting decision. Effective immediately. SENATE AMENDMENT NO. 1. Deletes reference to: 215 ILCS 5/1011 Replaces everything after the enacting clause. Provides that insurers may not refuse to issue or renew certain policies of automobile insurance, fire and extended coverage insurance, and personal lines insurance solely on the basis of credit reports. Provides that if a credit report is used in conjunction with other criteria in making an underwriting decision, the credit report may not be based upon the race, income, gender, religion, or national origin of the applicant, and if the decision is a denial, the identity of the credit reporting agency must be disclosed to the applicant. Effective January 1, 2002. SENATE AMENDMENT NO. 2. With respect to a provision that an offer by an insurance company to write a policy through an affiliate does not constitute a refusal by the insurance company, removes a restriction on offering a policy through an affiliate that specializes in substandard risks. SENATE AMENDMENT NO. 3. Removes the requirement that an insurer inform an applicant or insured of the specific reasons for a denial and identity of the credit reporting agency when the denial is based upon a credit report. Requires the insurer only to inform the applicant or insured of the denial. Effective October 1, 2001. Last action on Bill: PUBLIC ACT.............................. 92-0480 Last action date: AUG-23-2001 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 2 SENATE - 3 END OF INQUIRY Full Text Bill Status