92nd General Assembly
Summary of HB2419
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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 



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