Bill Text: PA HB1230 | 2011-2012 | Regular Session | Introduced

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Bill Title: Providing for use of credit history of insured.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2011-03-29 - Referred to INSURANCE [HB1230 Detail]

Download: Pennsylvania-2011-HB1230-Introduced.html

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PRINTER'S NO. 1340
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1230 Session of2011
INTRODUCED BY WATERS, JOSEPHS, M. O'BRIEN, STURLA AND CALTAGIRONE, MARCH 29, 2011
REFERRED TO COMMITTEE ON INSURANCE, MARCH 29, 2011
AN ACT
Amending the act of May 17, 1921 (P.L.789, No.285), entitled, as
amended, "An act relating to insurance; establishing an
insurance department; and amending, revising, and
consolidating the law relating to the licensing,
qualification, regulation, examination, suspension, and
dissolution of insurance companies, Lloyds associations,
reciprocal and inter-insurance exchanges, and certain
societies and orders, the examination and regulation of fire
insurance rating bureaus, and the licensing and regulation of
insurance agents and brokers; the service of legal process
upon foreign insurance companies, associations or exchanges;
providing penalties, and repealing existing laws," providing
for use of credit history of insured.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of May 17, 1921 (P.L.789, No.285), known
as The Insurance Department Act of 1921, is amended by adding a
section to read:
Section 652-A. Use of credit history of insured.
(a) General rule.--An insurer shall not deny, cancel or
refuse to renew or raise the premium of personal insurance due
in whole or in part to an insured's credit history.
(b) Enforcement.--Upon satisfactory evidence of a violation
of this section by an insurer or insurance producer or on
satisfactory evidence of conduct that would disqualify the
insurance producer from initial issuance of a certificate of
qualification under former section 604 or 622 or under this
article, the department may pursue any one or more of the
following courses of action regardless of whether the insurance
producer was previously so authorized by the department:
(1) Suspend, revoke or refuse to renew the certificate
of qualification or license of the offending party or
parties.
(2) Impose a civil penalty of not more than $5,000 for
each action in violation of any of the provisions of this
section.
(3) Issue an order to cease and desist.
(4) Impose such other conditions as the department may
deem appropriate.
(c) Rules and regulations.--The department may adopt such
rules and regulations as are necessary to administer this
section.
(d) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection:
"Credit history." A written, oral or other communication of
information by a consumer reporting agency bearing on a
consumer's credit worthiness, credit standing or credit
capacity, which is used, expected to be used or collected in
whole or in part for the purpose of serving as a factor in
establishing personal insurance premiums or eligibility for
coverage.
"Personal insurance." Property and casualty insurance to be
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used primarily for personal, family or household purposes, such
as homeowner and private passenger automobile insurance.
Section 2. This act shall take effect in 60 days.
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