SB 55: "An Act relating to actions by insurers based on credit history or insurance score."
00 SENATE BILL NO. 55 01 "An Act relating to actions by insurers based on credit history or insurance score." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 21.36.460(d) is amended to read: 04 (d) An insurer may not 05 (1) fail to renew [OR, AT RENEWAL, AGAIN UNDERWRITE OR 06 RATE] a personal insurance policy based in whole or in part on a consumer's credit 07 history or insurance score [; THE PROHIBITION IN THIS PARAGRAPH AGAINST 08 UNDERWRITING OR RATING A PERSONAL INSURANCE POLICY AT 09 RENEWAL MAY BE WAIVED BY THE CONSUMER; WAIVER ALLOWED 10 UNDER THIS PARAGRAPH MUST OCCUR AT EACH RENEWAL]; 11 (2) cancel, deny, underwrite, or rate personal insurance coverage based 12 in whole or in part on 13 (A) the absence of credit history or the inability to determine 14 the consumer's credit history if the insurer has received accurate and complete 15 information from the consumer; this subparagraph does not apply if the insurer
01 treats the consumer as if the consumer had neutral credit information as 02 approved by the director; 03 (B) credit inquiries not initiated by the consumer; 04 (C) credit inquiries relating to insurance coverage if identified 05 on a consumer's credit report; 06 (D) credit inquiries by the consumer for the consumer's own 07 credit information; 08 (E) multiple lender inquiries if coded on the consumer's credit 09 report as being for automobile, boat, recreation vehicle, or home mortgage 10 loans, unless all inquiries under that code within a 30-day period are counted 11 as one; 12 (F) credit history or an insurance score based on collection 13 accounts identified with a medical industry code; 14 (G) the consumer's use of a particular type of credit card, 15 charge card, or debit card or the absence of a credit card; 16 (H) the consumer's total available line of credit; however, the 17 consumer's ratio of debt to total available line of credit may be considered; 18 (I) the age of the most recent automobile or home loan obtained 19 by the consumer; however, an insurer may consider the bill payment history or 20 total number of loans; or 21 (J) the person's age when credit is established; 22 (3) use the credit history of the consumer when the consumer is 23 adversely affected by a joint account owner who was the spouse of the consumer or a 24 joint account owner who is the spouse of the consumer and who is a party to a divorce 25 or dissolution action against the consumer; this paragraph applies only if the consumer 26 provides written notice to the insurer that identifies the credit information that is 27 adversely affected by the joint account owner; this paragraph does not prevent the use 28 of credit history that is not identified by the consumer as required by this paragraph; 29 (4) use an insurance score that is calculated using the income, age, sex, 30 address, zip code, census block, ethnic group, religion, marital status, or nationality of 31 the consumer as a factor;
01 (5) use credit history to determine an insurance score if the history is 02 obtained more than 90 days before the policy is issued; 03 (6) use an insurance score derived from an insurance scoring model to 04 determine eligibility for an insurance payment plan; this paragraph does not prohibit 05 the use of credit history to evaluate the ability of the consumer to make payments. 06 * Sec. 2. AS 21.36.460(i)(1) is amended to read: 07 (1) "adverse action" has the meaning given in 15 U.S.C. 1681 et seq. 08 (Fair Credit Reporting Act) and includes 09 (A) cancellation, denial, or failure to renew personal insurance 10 coverage; 11 (B) charging a higher insurance premium for personal 12 insurance than would have been offered if [THE] credit history or insurance 13 score had not been considered [MORE FAVORABLE, WHETHER THE 14 CHARGE IS BY 15 (i) APPLICATION OF A RATING RULE; 16 (ii) ASSIGNMENT TO A RATING TIER THAT 17 DOES NOT HAVE THE LOWEST AVAILABLE RATES; OR 18 (iii) PLACEMENT WITH AN AFFILIATE 19 COMPANY THAT DOES NOT OFFER THE LOWEST RATES 20 AVAILABLE TO THE CONSUMER WITHIN THE AFFILIATE 21 GROUP OF INSURANCE COMPANIES]; or 22 (C) a [ANY] reduction or adverse or unfavorable change in the 23 terms of coverage or amount of personal insurance due to a consumer's credit 24 history or insurance score [; A REDUCTION OR ADVERSE OR 25 UNFAVORABLE CHANGE IN THE TERMS OF COVERAGE OCCURS 26 WHEN 27 (i) COVERAGE PROVIDED TO THE CONSUMER 28 IS NOT AS BROAD IN SCOPE AS COVERAGE REQUESTED BY 29 THE CONSUMER BUT AVAILABLE TO OTHER INSUREDS OF 30 THE INSURER OR ANY AFFILIATE; OR 31 (ii) THE CONSUMER IS NOT ELIGIBLE FOR
01 BENEFITS THAT ARE AVAILABLE THROUGH AFFILIATE 02 INSURERS];