|
|||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||
1 | AN ACT concerning regulation.
| ||||||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||||||
4 | Section 5. The Residential Mortgage License Act of 1987 is | ||||||||||||||||||||||||||||
5 | amended by adding Section 5-10 as follows: | ||||||||||||||||||||||||||||
6 | (205 ILCS 635/5-10 new) | ||||||||||||||||||||||||||||
7 | Sec. 5-10. Licensee actions with respect to credit | ||||||||||||||||||||||||||||
8 | information. A licensee may not deny an application for a | ||||||||||||||||||||||||||||
9 | mortgage solely on
the basis of credit information of | ||||||||||||||||||||||||||||
10 | prospective customers. If a licensee denies a mortgage | ||||||||||||||||||||||||||||
11 | application based on credit information, it must provide the | ||||||||||||||||||||||||||||
12 | affected party with an explanation for the licensee's action | ||||||||||||||||||||||||||||
13 | and an opportunity for the affected party to explain its credit | ||||||||||||||||||||||||||||
14 | information. | ||||||||||||||||||||||||||||
15 | Section 10. The Use of Credit Information in Personal | ||||||||||||||||||||||||||||
16 | Insurance Act is amended by changing Section 20 as follows:
| ||||||||||||||||||||||||||||
17 | (215 ILCS 157/20)
| ||||||||||||||||||||||||||||
18 | Sec. 20. Use of credit information. An insurer authorized | ||||||||||||||||||||||||||||
19 | to do business
in this State that uses credit information to | ||||||||||||||||||||||||||||
20 | underwrite or rate risks shall
not:
| ||||||||||||||||||||||||||||
21 | (1) Use an insurance score that is calculated using |
| |||||||
| |||||||
1 | income, gender,
address, ethnic group, religion, marital | ||||||
2 | status, or nationality of the consumer
as a factor.
| ||||||
3 | (2) Deny, cancel, or nonrenew a policy of personal | ||||||
4 | insurance solely on
the basis of credit information, | ||||||
5 | without consideration of any other applicable
underwriting | ||||||
6 | factor independent of credit information and not expressly
| ||||||
7 | prohibited by item (1). An insurer shall not be considered | ||||||
8 | to have denied,
cancelled, or nonrenewed a policy if | ||||||
9 | coverage is available through an
affiliate. If an insurer | ||||||
10 | denies, cancels, or does not renew a policy of personal | ||||||
11 | insurance based on credit information, it must provide the | ||||||
12 | affected party with an explanation for the insurer's action | ||||||
13 | and an opportunity for the affected party to explain its | ||||||
14 | credit information.
| ||||||
15 | (3) Base an insured's renewal rates for personal | ||||||
16 | insurance solely upon
credit information, without | ||||||
17 | consideration of any other applicable factor
independent | ||||||
18 | of credit information. An insurer shall not be considered | ||||||
19 | to
have based rates solely on credit information if | ||||||
20 | coverage is available in a
different tier of the same | ||||||
21 | insurer.
| ||||||
22 | (4) Take an adverse action against a consumer solely | ||||||
23 | because he or she
does not have a credit card account, | ||||||
24 | without consideration of any other
applicable factor | ||||||
25 | independent of credit information.
| ||||||
26 | (5) Consider an absence of credit information or an |
| |||||||
| |||||||
1 | inability to calculate
an insurance score in underwriting | ||||||
2 | or rating personal insurance, unless the
insurer does one | ||||||
3 | of the following:
| ||||||
4 | (A) Treats the consumer as otherwise filed with the
| ||||||
5 | Department, if the insurer presents information that | ||||||
6 | such
an absence or inability relates to the risk for | ||||||
7 | the insurer and submits a
filing certification form | ||||||
8 | signed by an officer for the insurer certifying that
| ||||||
9 | such treatment is actuarially justified.
| ||||||
10 | (B) Treats the consumer as if the applicant or | ||||||
11 | insured had neutral
credit information, as defined by | ||||||
12 | the insurer.
| ||||||
13 | (C) Excludes the use of credit information as a | ||||||
14 | factor and uses only
other underwriting criteria.
| ||||||
15 | (6) Take an adverse action against a consumer based on | ||||||
16 | credit
information, unless an insurer obtains and uses a | ||||||
17 | credit report issued or an
insurance score calculated | ||||||
18 | within 90 days from the date the policy is first
written or | ||||||
19 | renewal is issued.
| ||||||
20 | (7) Use credit information unless not later than every | ||||||
21 | 36 months
following the last time that the insurer obtained | ||||||
22 | current credit information
for the insured, the insurer | ||||||
23 | recalculates the insurance score or obtains an
updated | ||||||
24 | credit report. Regardless of the other requirements of this | ||||||
25 | Section:
| ||||||
26 | (A) At annual renewal, upon the request of a |
| |||||||
| |||||||
1 | consumer or the consumer's
agent, the insurer shall | ||||||
2 | re-underwrite and re-rate the policy based upon a
| ||||||
3 | current credit report or insurance score. An insurer | ||||||
4 | need not recalculate the
insurance score or obtain the | ||||||
5 | updated credit report of a consumer more
frequently | ||||||
6 | than once in a 12-month period.
| ||||||
7 | (B) The insurer shall have the discretion to obtain | ||||||
8 | current credit
information upon any renewal before the | ||||||
9 | expiration of 36 months, if
consistent with its | ||||||
10 | underwriting guidelines.
| ||||||
11 | (C) An insurer is not required to obtain current | ||||||
12 | credit information for
an insured, despite the | ||||||
13 | requirements of subitem (A) of item (7) of this Section
| ||||||
14 | if one of the following applies:
| ||||||
15 | (a) The insurer is treating the consumer as | ||||||
16 | otherwise filed with
the Department.
| ||||||
17 | (b) The insured is in the most | ||||||
18 | favorably-priced tier of the insurer,
within a | ||||||
19 | group of affiliated insurers. However, the insurer | ||||||
20 | shall have the
discretion to order credit | ||||||
21 | information, if consistent with its underwriting
| ||||||
22 | guidelines.
| ||||||
23 | (c) Credit was not used for underwriting or | ||||||
24 | rating the insured when
the policy was initially | ||||||
25 | written. However, the insurer shall have the
| ||||||
26 | discretion to use credit for underwriting or |
| |||||||
| |||||||
1 | rating the insured upon renewal,
if consistent | ||||||
2 | with its underwriting guidelines.
| ||||||
3 | (d) The insurer re-evaluates the insured | ||||||
4 | beginning no later than 36
months after inception | ||||||
5 | and thereafter based upon other underwriting or | ||||||
6 | rating
factors, excluding credit information.
| ||||||
7 | (8) Use the following as a negative factor in any | ||||||
8 | insurance scoring
methodology or in reviewing credit | ||||||
9 | information for the purpose of underwriting
or rating a | ||||||
10 | policy of personal insurance:
| ||||||
11 | (A) Credit inquiries not initiated by the consumer | ||||||
12 | or inquiries
requested by the consumer for his or her | ||||||
13 | own credit information.
| ||||||
14 | (B) Inquiries relating to insurance coverage, if | ||||||
15 | so identified on a
consumer's credit report.
| ||||||
16 | (C) Collection accounts with a medical industry | ||||||
17 | code, if so identified
on the consumer's credit report.
| ||||||
18 | (D) Multiple lender inquiries, if coded by the | ||||||
19 | consumer reporting agency
on the consumer's credit | ||||||
20 | report as being from the home mortgage industry and
| ||||||
21 | made within 30 days of one another, unless only one | ||||||
22 | inquiry is considered.
| ||||||
23 | (E) Multiple lender inquiries, if coded by the | ||||||
24 | consumer reporting agency
on the consumer's credit | ||||||
25 | report as being from the automobile lending industry
| ||||||
26 | and made within 30 days of one another, unless only one |
| |||||||
| |||||||
1 | inquiry is considered.
| ||||||
2 | (Source: P.A. 93-114, eff. 10-1-03; 93-477, eff. 10-1-03.)
| ||||||
3 | Section 15. The Public Utilities Act is amended by adding | ||||||
4 | Section 8-101.5 as follows: | ||||||
5 | (220 ILCS 5/8-101.5 new) | ||||||
6 | Sec. 8-101.5. Use of credit information of prospective and | ||||||
7 | existing customers. A public utility may not deny, cancel, or | ||||||
8 | nonrenew utility service solely on
the basis of credit | ||||||
9 | information of prospective or existing customers. If a public | ||||||
10 | utility denies, cancels, or does not renew service based on | ||||||
11 | credit information, it must provide the affected party with an | ||||||
12 | explanation for the public utility's action and an opportunity | ||||||
13 | for the affected party to explain its credit information.
|