HB156 - INSURANCE COVERAGE - Carter, Paula J.
HB156 PROHIBITS INSURERS FROM DISALLOWING AUTO COVERAGE BASED ON APPLICANT'S CREDIT.
Sponsor: Carter, Paula J. (61) Effective Date:00/00/00
CoSponsor:Auer, Ron (59) LR Number:0739-01
Last Action: COMMITTEE: INSURANCE
HCS HB 156
Next Hearing:Hearing not scheduled
Calendar:Bill currently not on calendar
ACTIONS HEARINGS CALENDAR
BILL SUMMARIES BILL TEXT FISCAL NOTES
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Available Bill Summaries for HB156
| Committee | Introduced |


Available Bill Text for HB156
| Committee | Introduced |

Available Fiscal Notes for HB156
| House Committee Substitute | Introduced |

BILL SUMMARIES

COMMITTEE

HCS HB 156 -- INSURANCE COVERAGE

SPONSOR:  Auer

COMMITTEE ACTION:  Voted "do pass" by the Committee on Insurance
by a vote of 12 to 3.

This substitute prohibits an insurer from refusing to issue or
modifying a policy on the sole basis of information received in
a consumer credit report.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters of the original bill say that persons
who otherwise pay their premiums on time and are good drivers
are being penalized for bad credit reports.

Testifying for the original bill were Representative Carter; and
Gene Bickel.

OPPONENTS:  Those who oppose the original bill say that bad
credit suggests a high insurance risk.  By using credit reports,
insurers can set fair premiums for policyholders based on
expected losses.  Opponents also say that the use of credit
reports to underwrite insurance is permissible under federal law.

Testifying against the original bill were State Farm Insurance;
Missouri Insurance Coalition; Jefferson City Credit Bureau;
National Association of Independent Insurers (NAII); Farmers
Insurance Group; and General American Life Insurance.

Martin Romitti, Research Analyst


INTRODUCED

HB 156 -- Automobile Insurance

Co-Sponsors:  Carter, Auer

The bill prohibits automobile insurers from refusing to issue a
policy because of information received from an applicant's
credit report.


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Last Updated August 11, 1997 at 4:07 pm