Bill Text: IL SB2208 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Amends the Use of Credit Information in Personal Insurance Act. Provides that an insurer authorized to do business in the State shall not use a consumer's credit information or credit report to calculate an insurance score for private passenger automobile insurance policies amended, delivered, issued, or renewed on or after the effective date of the amendatory Act.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2016-05-13 - Rule 3-9(a) / Re-referred to Assignments [SB2208 Detail]

Download: Illinois-2015-SB2208-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 SB2208 Introduced 12/14/2015, by Sen. Jacqueline Y. Collins SYNOPSIS AS INTRODUCED:
215 ILCS 157/20
Amends the Use of Credit Information in Personal Insurance Act. Provides that an insurer authorized to do business in the State shall not use a consumer's credit information or credit report to calculate an insurance score for private passenger automobile insurance policies amended, delivered, issued, or renewed on or after the effective date of the amendatory Act.
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A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Use of Credit Information in Personal
Insurance Act is amended by changing Section 20 as follows:
(215 ILCS 157/20)
Sec. 20. Use of credit information.
(a) An insurer authorized to do business in this State that
uses credit information to underwrite or rate risks shall not:
(1) Use an insurance score that is calculated using
income, gender, address, ethnic group, religion, marital
status, or nationality of the consumer as a factor.
(2) Deny, cancel, or nonrenew a policy of personal
insurance solely on the basis of credit information,
without consideration of any other applicable underwriting
factor independent of credit information and not expressly
prohibited by item (1). An insurer shall not be considered
to have denied, cancelled, or nonrenewed a policy if
coverage is available through an affiliate. If an insurer
denies, cancels, or does not renew a policy of personal
insurance based on credit information, it must provide the
affected party with a notice as described in Section 35 of
this Act and an opportunity for the affected party to

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explain its credit information under the procedures
outlined in Section 22 of this Act.
(3) Base an insured's renewal rates for personal
insurance solely upon credit information, without
consideration of any other applicable factor independent
of credit information. An insurer shall not be considered
to have based rates solely on credit information if
coverage is available in a different tier of the same
insurer.
(4) Take an adverse action against a consumer solely
because he or she does not have a credit card account,
without consideration of any other applicable factor
independent of credit information.
(5) Consider an absence of credit information or an
inability to calculate an insurance score in underwriting
or rating personal insurance, unless the insurer does one
of the following:
(A) Treats the consumer as otherwise filed with the
Department, if the insurer presents information that
such an absence or inability relates to the risk for
the insurer and submits a filing certification form
signed by an officer for the insurer certifying that
such treatment is actuarially justified.
(B) Treats the consumer as if the applicant or
insured had neutral credit information, as defined by
the insurer.

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(C) Excludes the use of credit information as a
factor and uses only other underwriting criteria.
(6) Take an adverse action against a consumer based on
credit information, unless an insurer obtains and uses a
credit report issued or an insurance score calculated
within 90 days from the date the policy is first written or
renewal is issued.
(7) (Blank).
(8) Use the following as a negative factor in any
insurance scoring methodology or in reviewing credit
information for the purpose of underwriting or rating a
policy of personal insurance:
(A) Credit inquiries not initiated by the consumer
or inquiries requested by the consumer for his or her
own credit information.
(B) Inquiries relating to insurance coverage, if
so identified on a consumer's credit report.
(C) Collection accounts with a medical industry
code, if so identified on the consumer's credit report.
(D) Multiple lender inquiries, if coded by the
consumer reporting agency on the consumer's credit
report as being from the home mortgage industry and
made within 30 days of one another, unless only one
inquiry is considered.
(E) Multiple lender inquiries, if coded by the
consumer reporting agency on the consumer's credit

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report as being from the automobile lending industry
and made within 30 days of one another, unless only one
inquiry is considered.
(a-1) Notwithstanding any other provision of this Section
to the contrary, an insurer authorized to do business in this
State shall not use a consumer's credit information or credit
report to calculate an insurance score for private passenger
automobile insurance policies amended, delivered, issued, or
renewed on or after the effective date of this amendatory Act
of the 99th General Assembly.
(b) An insurer authorized to do business in this State that
uses credit information to underwrite or rate risks shall, at
annual renewal upon the request of an insured or an insured's
agent, re-underwrite and re-rate the insured's personal
insurance policy based on a current credit report or insurance
score unless one of the following applies:
(1) The insurer's treatment of the consumer is
otherwise approved by the Department.
(2) The insured is in the most favorably priced tier of
the insurer, within a group of affiliated insurers.
(3) Credit information was not used for underwriting or
rating the insured when the personal insurance policy was
initially written.
(4) The insurer reevaluates the insured at least every
36 months after a personal insurance policy is issued based
on underwriting or rating factors other than credit

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information.
(5) The insurer has recalculated an insurance score or
obtained an updated credit report of a consumer in the
previous 12-month period.
An insurer that uses credit information to underwrite or rate
risks may obtain current credit information upon the renewal of
a personal insurance policy when renewal occurs more frequently
than every 36 months if consistent with the insurer's
underwriting guidelines.
(Source: P.A. 96-560, eff. 8-18-09.)