HB 2248 -- Use of Credit Scores by Insurance Companies

Sponsor:  Deeken

This bill changes the laws regarding the use of credit
information when underwriting insurance contracts.  In its main
provisions, the bill:

(1)  Revises the definition of "adverse action" to have the same
meaning as in the federal Fair Credit Reporting Act including
cancellation, denial, and nonrenewal of personal insurance
coverage and creating any reduction, adverse, or unfavorable
change in the terms of coverage, including charging higher
premiums due to a person's credit history or insurance credit
score;

(2)  Revises the definition of "contract" as it relates to
automobile insurance, professional liability, and malpractice
liability policies; and

(3)  Prohibits insurers from taking an adverse action against an
applicant or insured based on the absence of credit information
or an inability to calculate an insurance score in underwriting
or rating personal insurance.

The provisions of the bill apply to contracts entered into or
renewed after July 1, 2009.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:12 pm