Full Text of SB1706 100th General Assembly
SB1706sam002 100TH GENERAL ASSEMBLY | Sen. Daniel Biss Filed: 5/31/2017
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| 1 | | AMENDMENT TO SENATE BILL 1706
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1706 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Insurance Code is amended by | 5 | | adding Section 143.24e as follows: | 6 | | (215 ILCS 5/143.24e new) | 7 | | Sec. 143.24e. ZIP code discrimination prohibited. | 8 | | Notwithstanding any other provision of law, an insurer | 9 | | authorized to do business in this State may not use a person's | 10 | | ZIP code in underwriting or rating automobile insurance, | 11 | | including the determination of premium rates. | 12 | | Section 10. The Use of Credit Information in Personal | 13 | | Insurance Act is amended by changing Section 20 as follows:
| 14 | | (215 ILCS 157/20)
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| 1 | | Sec. 20. Use of credit information. | 2 | | (a) An insurer authorized to do business
in this State that | 3 | | uses credit information to underwrite or rate risks shall
not:
| 4 | | (1) Use an insurance score that is calculated using | 5 | | income, gender,
address, ethnic group, religion, marital | 6 | | status, or nationality of the consumer
as a factor.
| 7 | | (2) Deny, cancel, or nonrenew a policy of personal | 8 | | insurance solely on
the basis of credit information, | 9 | | without consideration of any other applicable
underwriting | 10 | | factor independent of credit information and not expressly
| 11 | | prohibited by item (1). An insurer shall not be considered | 12 | | to have denied,
cancelled, or nonrenewed a policy if | 13 | | coverage is available through an
affiliate. If an insurer | 14 | | denies, cancels, or does not renew a policy of personal | 15 | | insurance based on credit information, it must provide the | 16 | | affected party with a notice as described in Section 35 of | 17 | | this Act and an opportunity for the affected party to | 18 | | explain its credit information under the procedures | 19 | | outlined in Section 22 of this Act.
| 20 | | (3) Base an insured's renewal rates for personal | 21 | | insurance solely upon
credit information, without | 22 | | consideration of any other applicable factor
independent | 23 | | of credit information. An insurer shall not be considered | 24 | | to
have based rates solely on credit information if | 25 | | coverage is available in a
different tier of the same | 26 | | insurer.
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| 1 | | (4) Take an adverse action against a consumer solely | 2 | | because he or she
does not have a credit card account, | 3 | | without consideration of any other
applicable factor | 4 | | independent of credit information.
| 5 | | (5) Consider an absence of credit information or an | 6 | | inability to calculate
an insurance score in underwriting | 7 | | or rating personal insurance, unless the
insurer does one | 8 | | of the following:
| 9 | | (A) Treats the consumer as otherwise filed with the
| 10 | | Department, if the insurer presents information that | 11 | | such
an absence or inability relates to the risk for | 12 | | the insurer and submits a
filing certification form | 13 | | signed by an officer for the insurer certifying that
| 14 | | such treatment is actuarially justified.
| 15 | | (B) Treats the consumer as if the applicant or | 16 | | insured had neutral
credit information, as defined by | 17 | | the insurer.
| 18 | | (C) Excludes the use of credit information as a | 19 | | factor and uses only
other underwriting criteria.
| 20 | | (6) Take an adverse action against a consumer based on | 21 | | credit
information, unless an insurer obtains and uses a | 22 | | credit report issued or an
insurance score calculated | 23 | | within 90 days from the date the policy is first
written or | 24 | | renewal is issued.
| 25 | | (7) (Blank).
| 26 | | (8) Use the following as a negative factor in any |
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| 1 | | insurance scoring
methodology or in reviewing credit | 2 | | information for the purpose of underwriting
or rating a | 3 | | policy of personal insurance:
| 4 | | (A) Credit inquiries not initiated by the consumer | 5 | | or inquiries
requested by the consumer for his or her | 6 | | own credit information.
| 7 | | (B) Inquiries relating to insurance coverage, if | 8 | | so identified on a
consumer's credit report.
| 9 | | (C) Collection accounts with a medical industry | 10 | | code, if so identified
on the consumer's credit report.
| 11 | | (D) Multiple lender inquiries, if coded by the | 12 | | consumer reporting agency
on the consumer's credit | 13 | | report as being from the home mortgage industry and
| 14 | | made within 30 days of one another, unless only one | 15 | | inquiry is considered.
| 16 | | (E) Multiple lender inquiries, if coded by the | 17 | | consumer reporting agency
on the consumer's credit | 18 | | report as being from the automobile lending industry
| 19 | | and made within 30 days of one another, unless only one | 20 | | inquiry is considered. | 21 | | (a-1) Notwithstanding any other provision of this Section | 22 | | to the contrary, an insurer authorized to do business in this | 23 | | State shall not use a consumer's credit information or credit | 24 | | report to calculate classification plans, rating plans, rating | 25 | | tier placement factors, scoring models, rules, rates, | 26 | | premiums, or any other method of establishing the premium to be |
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| 1 | | paid by an automobile insurance policyholder or covered driver, | 2 | | and the modification of any of the foregoing, for private | 3 | | passenger automobile insurance policies amended, delivered, | 4 | | issued, or renewed on or after the effective date of this | 5 | | amendatory Act of the 100th General Assembly. | 6 | | (b) An insurer authorized to do business
in this State that | 7 | | uses credit information to underwrite or rate risks shall, at | 8 | | annual renewal upon the request of an insured or an insured's | 9 | | agent, re-underwrite and re-rate the insured's personal | 10 | | insurance policy based on a current credit report or insurance | 11 | | score unless one of the following applies: | 12 | | (1) The insurer's treatment of the consumer is | 13 | | otherwise approved by the Department. | 14 | | (2) The insured is in the most favorably priced tier of | 15 | | the insurer, within a group of affiliated insurers. | 16 | | (3) Credit information was not used for underwriting or | 17 | | rating the insured when the personal insurance policy was | 18 | | initially written. | 19 | | (4) The insurer reevaluates the insured at least every | 20 | | 36 months after a personal insurance policy is issued based | 21 | | on underwriting or rating factors other than credit | 22 | | information. | 23 | | (5) The insurer has recalculated an insurance score or | 24 | | obtained an updated credit report of a consumer in the | 25 | | previous 12-month period. | 26 | | An insurer that uses credit information to underwrite or rate |
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| 1 | | risks may obtain current credit information upon the renewal of | 2 | | a personal insurance policy when renewal occurs more frequently | 3 | | than every 36 months if consistent with the insurer's | 4 | | underwriting guidelines.
| 5 | | (Source: P.A. 96-560, eff. 8-18-09.)".
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