Bill Text: IL HB3567 | 2021-2022 | 102nd General Assembly | Introduced
Bill Title: Amends the Use of Credit Information in Personal Insurance Act to provide that an insurer authorized to do business in the State that uses credit information to underwrite or rate risks shall not use credit information in any way when setting personal auto insurance rates.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB3567 Detail]
Download: Illinois-2021-HB3567-Introduced.html
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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Use of Credit Information in Personal | |||||||||||||||||||
5 | Insurance Act is amended by changing Section 20 as follows:
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6 | (215 ILCS 157/20)
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7 | Sec. 20. Use of credit information. | |||||||||||||||||||
8 | (a) An insurer authorized to do business
in this State | |||||||||||||||||||
9 | that uses credit information to underwrite or rate risks shall
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10 | not:
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11 | (1) Use an insurance score that is calculated using | |||||||||||||||||||
12 | income, gender,
address, ethnic group, religion, marital | |||||||||||||||||||
13 | status, or nationality of the consumer
as a factor.
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14 | (2) Deny, cancel, or nonrenew a policy of personal | |||||||||||||||||||
15 | insurance solely on
the basis of credit information, | |||||||||||||||||||
16 | without consideration of any other applicable
underwriting | |||||||||||||||||||
17 | factor independent of credit information and not expressly
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18 | prohibited by item (1). An insurer shall not be considered | |||||||||||||||||||
19 | to have denied,
cancelled, or nonrenewed a policy if | |||||||||||||||||||
20 | coverage is available through an
affiliate. If an insurer | |||||||||||||||||||
21 | denies, cancels, or does not renew a policy of personal | |||||||||||||||||||
22 | insurance based on credit information, it must provide the | |||||||||||||||||||
23 | affected party with a notice as described in Section 35 of |
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1 | this Act and an opportunity for the affected party to | ||||||
2 | explain its credit information under the procedures | ||||||
3 | outlined in Section 22 of this Act.
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4 | (3) Base an insured's renewal rates for personal | ||||||
5 | insurance solely upon
credit information, without | ||||||
6 | consideration of any other applicable factor
independent | ||||||
7 | of credit information. An insurer shall not be considered | ||||||
8 | to
have based rates solely on credit information if | ||||||
9 | coverage is available in a
different tier of the same | ||||||
10 | insurer.
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11 | (3.5) Use credit information in any way when setting | ||||||
12 | personal auto insurance rates.
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13 | (4) Take an adverse action against a consumer solely | ||||||
14 | because he or she
does not have a credit card account, | ||||||
15 | without consideration of any other
applicable factor | ||||||
16 | independent of credit information.
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17 | (5) Consider an absence of credit information or an | ||||||
18 | inability to calculate
an insurance score in underwriting | ||||||
19 | or rating personal insurance, unless the
insurer does one | ||||||
20 | of the following:
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21 | (A) Treats the consumer as otherwise filed with | ||||||
22 | the
Department, if the insurer presents information | ||||||
23 | that such
an absence or inability relates to the risk | ||||||
24 | for the insurer and submits a
filing certification | ||||||
25 | form signed by an officer for the insurer certifying | ||||||
26 | that
such treatment is actuarially justified.
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1 | (B) Treats the consumer as if the applicant or | ||||||
2 | insured had neutral
credit information, as defined by | ||||||
3 | the insurer.
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4 | (C) Excludes the use of credit information as a | ||||||
5 | factor and uses only
other underwriting criteria.
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6 | (6) Take an adverse action against a consumer based on | ||||||
7 | credit
information, unless an insurer obtains and uses a | ||||||
8 | credit report issued or an
insurance score calculated | ||||||
9 | within 90 days from the date the policy is first
written or | ||||||
10 | renewal is issued.
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11 | (7) (Blank).
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12 | (8) Use the following as a negative factor in any | ||||||
13 | insurance scoring
methodology or in reviewing credit | ||||||
14 | information for the purpose of underwriting
or rating a | ||||||
15 | policy of personal insurance:
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16 | (A) Credit inquiries not initiated by the consumer | ||||||
17 | or inquiries
requested by the consumer for his or her | ||||||
18 | own credit information.
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19 | (B) Inquiries relating to insurance coverage, if | ||||||
20 | so identified on a
consumer's credit report.
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21 | (C) Collection accounts with a medical industry | ||||||
22 | code, if so identified
on the consumer's credit | ||||||
23 | report.
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24 | (D) Multiple lender inquiries, if coded by the | ||||||
25 | consumer reporting agency
on the consumer's credit | ||||||
26 | report as being from the home mortgage industry and
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1 | made within 30 days of one another, unless only one | ||||||
2 | inquiry is considered.
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3 | (E) Multiple lender inquiries, if coded by the | ||||||
4 | consumer reporting agency
on the consumer's credit | ||||||
5 | report as being from the automobile lending industry
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6 | and made within 30 days of one another, unless only one | ||||||
7 | inquiry is considered. | ||||||
8 | (b) An insurer authorized to do business
in this State | ||||||
9 | that uses credit information to underwrite or rate risks | ||||||
10 | shall, at annual renewal upon the request of an insured or an | ||||||
11 | insured's agent, re-underwrite and re-rate the insured's | ||||||
12 | personal insurance policy based on a current credit report or | ||||||
13 | insurance score unless one of the following applies: | ||||||
14 | (1) The insurer's treatment of the consumer is | ||||||
15 | otherwise approved by the Department. | ||||||
16 | (2) The insured is in the most favorably priced tier | ||||||
17 | of the insurer, within a group of affiliated insurers. | ||||||
18 | (3) Credit information was not used for underwriting | ||||||
19 | or rating the insured when the personal insurance policy | ||||||
20 | was initially written. | ||||||
21 | (4) The insurer reevaluates the insured at least every | ||||||
22 | 36 months after a personal insurance policy is issued | ||||||
23 | based on underwriting or rating factors other than credit | ||||||
24 | information. | ||||||
25 | (5) The insurer has recalculated an insurance score or | ||||||
26 | obtained an updated credit report of a consumer in the |
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1 | previous 12-month period. | ||||||
2 | An insurer that uses credit information to underwrite or rate | ||||||
3 | risks may obtain current credit information upon the renewal | ||||||
4 | of a personal insurance policy when renewal occurs more | ||||||
5 | frequently than every 36 months if consistent with the | ||||||
6 | insurer's underwriting guidelines.
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7 | (Source: P.A. 96-560, eff. 8-18-09.)
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