HB1502I-INSURANCE
Summary of the Introduced Bill

HB 1502 -- Insurance

Co-Sponsors:  Luetkenhaus, Ward, Abel, Surface, Burton

This bill make several restrictions in how insurers may use an
applicant's credit information in their underwriting practices.

The bill prohibits insurers from:

(1)  Using credit information as the sole underwriting factor;

(2)  Using credit information contained in a credit report that
the insurer knows to be in dispute; and

(3)  Providing credit information to third parties, unless
specifically authorized by the federal Fair Credit Reporting Act.

The bill requires the insurer to inform the applicant, at the
time of application, if credit information may be used as an
underwriting factor.  Also, the bill requires that when a credit
report adversely affects an applicant, the insurer must inform
the applicant about his or her rights regarding the credit
information.

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Last Updated October 11, 2002 at 9:01 am