Bill Text: PA SB95 | 2009-2010 | Regular Session | Introduced

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Bill Title: Providing for use of credit history of insureds; and further providing for penalties imposed by Insurance Department.

Spectrum: Moderate Partisan Bill (Democrat 10-2)

Status: (Introduced - Dead) 2009-01-29 - Referred to BANKING AND INSURANCE [SB95 Detail]

Download: Pennsylvania-2009-SB95-Introduced.html

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PRINTER'S NO. 74
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 95 Session of2009
INTRODUCED BY WILLIAMS, TARTAGLIONE, KITCHEN, FONTANA, STOUT, BROWNE, FERLO, WASHINGTON, EARLL, O'PAKE, COSTA AND FARNESE, JANUARY 29, 2009
REFERRED TO BANKING AND INSURANCE, JANUARY 29, 2009
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 insureds; and further providing
for penalties imposed by Insurance Department.
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 personal insurance due in whole or in part to an
insured's credit history. Placement with an affiliated insurer
does not constitute denial of coverage under this section.
(b) Rules and regulations.--The department may adopt such
rules and regulations as are necessary to administer this
section.
(c) Violations.--Upon satisfactory evidence of the conduct
violating this section by any insurer or insurance producer or
on satisfactory evidence of such 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 or 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 listed in
this subsection.
(3) Issue an order to cease and desist.
(4) Impose such other conditions as the department may
deem appropriate.
(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.
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"Insurance score." A number or rating that is derived from
an algorithm, computer application, model or other process that
is based in whole or in part on credit history.
"Personal insurance." Property and casualty insurance to be
used primarily for personal, family or household purposes, such
as homeowner and private passenger automobile insurance.
"Tier." A category within a single insurer into which
insureds with substantially like insuring, risk or exposure
factors and expense elements are placed for the purposes of
determining rate or premium.
Section 2. This act shall take effect in 60 days.
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