HB 5024 Summary

• Prohibits insurers from using marital status, age, gender, or education level as factors in underwriting or rating private passenger nonfleet automobile insurance policies.

• Requires insurers to allocate general expenses, acquisition costs, and miscellaneous taxes as flat dollar amounts to base rates, but prohibits flat dollar allocation of producer commissions, premium taxes, underwriting profits, and contingencies.

• Mandates that rating plans using territorial classifications assign 75% weight to individual territorial loss cost indication and 25% weight to statewide average loss cost indication.

• Establishes comprehensive rules for credit history use in personal risk insurance, including requirements for disclosure to applicants, consideration of extraordinary life circumstances, and restrictions on certain credit characteristics.

• Effective October 1, 2014.