Sen. Jacqueline Y. Collins
Filed: 3/1/2017
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1 | AMENDMENT TO SENATE BILL 1706
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2 | AMENDMENT NO. ______. Amend Senate Bill 1706 by replacing | ||||||
3 | everything after the enacting clause with the following:
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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 that | ||||||
9 | uses credit information to underwrite or rate risks shall
not:
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10 | (1) Use an insurance score that is calculated using | ||||||
11 | income, gender,
address, ethnic group, religion, marital | ||||||
12 | status, or nationality of the consumer
as a factor.
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13 | (2) Deny, cancel, or nonrenew a policy of personal | ||||||
14 | insurance solely on
the basis of credit information, | ||||||
15 | without consideration of any other applicable
underwriting | ||||||
16 | factor independent of credit information and not expressly
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1 | prohibited by item (1). An insurer shall not be considered | ||||||
2 | to have denied,
cancelled, or nonrenewed a policy if | ||||||
3 | coverage is available through an
affiliate. If an insurer | ||||||
4 | denies, cancels, or does not renew a policy of personal | ||||||
5 | insurance based on credit information, it must provide the | ||||||
6 | affected party with a notice as described in Section 35 of | ||||||
7 | this Act and an opportunity for the affected party to | ||||||
8 | explain its credit information under the procedures | ||||||
9 | outlined in Section 22 of this Act.
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10 | (3) Base an insured's renewal rates for personal | ||||||
11 | insurance solely upon
credit information, without | ||||||
12 | consideration of any other applicable factor
independent | ||||||
13 | of credit information. An insurer shall not be considered | ||||||
14 | to
have based rates solely on credit information if | ||||||
15 | coverage is available in a
different tier of the same | ||||||
16 | insurer.
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17 | (4) Take an adverse action against a consumer solely | ||||||
18 | because he or she
does not have a credit card account, | ||||||
19 | without consideration of any other
applicable factor | ||||||
20 | independent of credit information.
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21 | (5) Consider an absence of credit information or an | ||||||
22 | inability to calculate
an insurance score in underwriting | ||||||
23 | or rating personal insurance, unless the
insurer does one | ||||||
24 | of the following:
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25 | (A) Treats the consumer as otherwise filed with the
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26 | Department, if the insurer presents information that |
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1 | such
an absence or inability relates to the risk for | ||||||
2 | the insurer and submits a
filing certification form | ||||||
3 | signed by an officer for the insurer certifying that
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4 | such treatment is actuarially justified.
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5 | (B) Treats the consumer as if the applicant or | ||||||
6 | insured had neutral
credit information, as defined by | ||||||
7 | the insurer.
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8 | (C) Excludes the use of credit information as a | ||||||
9 | factor and uses only
other underwriting criteria.
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10 | (6) Take an adverse action against a consumer based on | ||||||
11 | credit
information, unless an insurer obtains and uses a | ||||||
12 | credit report issued or an
insurance score calculated | ||||||
13 | within 90 days from the date the policy is first
written or | ||||||
14 | renewal is issued.
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15 | (7) (Blank).
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16 | (8) Use the following as a negative factor in any | ||||||
17 | insurance scoring
methodology or in reviewing credit | ||||||
18 | information for the purpose of underwriting
or rating a | ||||||
19 | policy of personal insurance:
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20 | (A) Credit inquiries not initiated by the consumer | ||||||
21 | or inquiries
requested by the consumer for his or her | ||||||
22 | own credit information.
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23 | (B) Inquiries relating to insurance coverage, if | ||||||
24 | so identified on a
consumer's credit report.
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25 | (C) Collection accounts with a medical industry | ||||||
26 | code, if so identified
on the consumer's credit report.
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1 | (D) Multiple lender inquiries, if coded by the | ||||||
2 | consumer reporting agency
on the consumer's credit | ||||||
3 | report as being from the home mortgage industry and
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4 | made within 30 days of one another, unless only one | ||||||
5 | inquiry is considered.
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6 | (E) Multiple lender inquiries, if coded by the | ||||||
7 | consumer reporting agency
on the consumer's credit | ||||||
8 | report as being from the automobile lending industry
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9 | and made within 30 days of one another, unless only one | ||||||
10 | inquiry is considered. | ||||||
11 | (a-1) Notwithstanding any other provision of this Section | ||||||
12 | to the contrary, an insurer authorized to do business in this | ||||||
13 | State shall not use a consumer's credit information or credit | ||||||
14 | report to calculate classification plans, rating plans, rating | ||||||
15 | tier placement factors, scoring models, rules, rates, | ||||||
16 | premiums, or any other method of establishing the premium to be | ||||||
17 | paid by an automobile insurance policyholder or covered driver, | ||||||
18 | and the modification of any of the foregoing, for private | ||||||
19 | passenger automobile insurance policies amended, delivered, | ||||||
20 | issued, or renewed on or after the effective date of this | ||||||
21 | amendatory Act of the 100th General Assembly. | ||||||
22 | (b) An insurer authorized to do business
in this State that | ||||||
23 | uses credit information to underwrite or rate risks shall, at | ||||||
24 | annual renewal upon the request of an insured or an insured's | ||||||
25 | agent, re-underwrite and re-rate the insured's personal | ||||||
26 | insurance policy based on a current credit report or insurance |
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1 | score unless one of the following applies: | ||||||
2 | (1) The insurer's treatment of the consumer is | ||||||
3 | otherwise approved by the Department. | ||||||
4 | (2) The insured is in the most favorably priced tier of | ||||||
5 | the insurer, within a group of affiliated insurers. | ||||||
6 | (3) Credit information was not used for underwriting or | ||||||
7 | rating the insured when the personal insurance policy was | ||||||
8 | initially written. | ||||||
9 | (4) The insurer reevaluates the insured at least every | ||||||
10 | 36 months after a personal insurance policy is issued based | ||||||
11 | on underwriting or rating factors other than credit | ||||||
12 | information. | ||||||
13 | (5) The insurer has recalculated an insurance score or | ||||||
14 | obtained an updated credit report of a consumer in the | ||||||
15 | previous 12-month period. | ||||||
16 | An insurer that uses credit information to underwrite or rate | ||||||
17 | risks may obtain current credit information upon the renewal of | ||||||
18 | a personal insurance policy when renewal occurs more frequently | ||||||
19 | than every 36 months if consistent with the insurer's | ||||||
20 | underwriting guidelines.
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21 | (Source: P.A. 96-560, eff. 8-18-09.)".
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