04/10/2003 09:05 AM House STA

HB   5-INSURANCE DISCRIMINATION BY CREDIT RATING                                                                              
                                                                                                                                
CHAIR WEYHRAUCH  announced that  the next  order of  business was                                                               
HOUSE BILL  NO. 5, "An  Act prohibiting discrimination  by credit                                                               
rating or  credit scoring in  insurance rates; and  providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
Number 2767                                                                                                                     
                                                                                                                                
CHAIR  WEYHRAUCH  announced  that  before  the  committee  was  a                                                               
proposed  committee substitute  (CS), Version  23-LS0021\H, Ford,                                                               
4/2/03.    [No  objection  was  stated, and  it  was  treated  as                                                               
adopted.]                                                                                                                       
                                                                                                                                
Number 2730                                                                                                                     
                                                                                                                                
REPRESENTATIVE HOLM moved to report  CSHB 5 [Version 23-LS0021\H,                                                               
Ford, 4/2/03]  out of  committee with  individual recommendations                                                               
and  the accompanying  fiscal note.   There  being no  objection,                                                               
CSHB 5(STA)  was reported from  the House State  Affairs Standing                                                               
Committee.  [An amendment was adopted later in the meeting.]                                                                    
                                                                                                                                
HB  5-INSURANCE DISCRIMINATION BY CREDIT RATING                                                                               
                                                                                                                                
CHAIR WEYHRAUCH returned  attention to HOUSE BILL NO.  5, "An Act                                                               
prohibiting discrimination by credit  rating or credit scoring in                                                               
insurance rates; and providing for an effective date."                                                                          
                                                                                                                                
Number 2458                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GRUENBERG explained  that he'd  been informed  of                                                               
something about  the bill  that doesn't  appear to  be true.   He                                                               
referred to  the previous  hearing [April 5,  2003] and  said his                                                               
concern had been that the Division  of Insurance would be able to                                                               
get the  information regarding  Fair Isaac's  [model] so  that it                                                               
would  know internally  the basis  for the  credit scoring;  that                                                               
information would remain confidential.  He continued:                                                                           
                                                                                                                                
     I  was informed  that there  was a  provision in  there                                                                    
     that dealt with this.   And I'm looking at the proposed                                                                    
     CS.  It's  on page 4 and  5.  And this  was supposed to                                                                    
     have been taken  off of the version that  passed the --                                                                    
     it  was Senate  Bill  320 that  passed  the House  last                                                                    
     time.   There were four  subsections in that.   And the                                                                    
     first  three   subsections  are  on  pages   4  and  5:                                                                    
     [Section] 21.39.035  (b)(1), (2),  and (3).   But there                                                                    
     was a fourth that is not  in the current version of the                                                                    
     bill, and  I don't know  why.   And that would  add the                                                                    
     phrase:   "may be displayed  by the insurer  that files                                                                    
     the information."                                                                                                          
                                                                                                                                
REPRESENTATIVE  GRUENBERG  expressed  concern because  he'd  been                                                               
informed that [the two were] identical.                                                                                         
                                                                                                                                
CHAIR WEYHRAUCH said he hadn't noticed that discrepancy.                                                                        
                                                                                                                                
Number 2307                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GRUENBERG moved  that the  committee rescind  its                                                               
action [in  reporting CSHB 5, Version  23-LS0021\H, Ford, 4/2/03,                                                               
out of  committee earlier in  the meeting]; that an  amendment be                                                               
adopted to  put paragraph  (4) in,  as previously  described; and                                                               
that CSHB  5 [Version 23-LS0021\H,  Ford, 4/2/03, as  amended] be                                                               
reported out  of committee  [with individual  recommendations and                                                               
the accompanying  fiscal note].   There  being no  objection, the                                                               
action was rescinded, the amendment  was adopted, and CSHB 5(STA)                                                               
was reported from the House State Affairs Standing Committee.