Illinois General Assembly - Full Text of SB1706
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Full Text of SB1706  100th General Assembly


Sen. Daniel Biss

Filed: 5/31/2017





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2    AMENDMENT NO. ______. Amend Senate Bill 1706 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Insurance Code is amended by
5adding Section 143.24e as follows:
6    (215 ILCS 5/143.24e new)
7    Sec. 143.24e. ZIP code discrimination prohibited.
8Notwithstanding any other provision of law, an insurer
9authorized to do business in this State may not use a person's
10ZIP code in underwriting or rating automobile insurance,
11including the determination of premium rates.
12    Section 10. The Use of Credit Information in Personal
13Insurance 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
3uses 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
22to the contrary, an insurer authorized to do business in this
23State shall not use a consumer's credit information or credit
24report to calculate classification plans, rating plans, rating
25tier placement factors, scoring models, rules, rates,
26premiums, or any other method of establishing the premium to be



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1paid by an automobile insurance policyholder or covered driver,
2and the modification of any of the foregoing, for private
3passenger automobile insurance policies amended, delivered,
4issued, or renewed on or after the effective date of this
5amendatory Act of the 100th General Assembly.
6    (b) An insurer authorized to do business in this State that
7uses credit information to underwrite or rate risks shall, at
8annual renewal upon the request of an insured or an insured's
9agent, re-underwrite and re-rate the insured's personal
10insurance policy based on a current credit report or insurance
11score 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.
26An insurer that uses credit information to underwrite or rate



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1risks may obtain current credit information upon the renewal of
2a personal insurance policy when renewal occurs more frequently
3than every 36 months if consistent with the insurer's
4underwriting guidelines.
5(Source: P.A. 96-560, eff. 8-18-09.)".