HB 5372 Summary

• Prohibits insurance companies from using an applicant's or insured's credit history as a factor in underwriting or rating private passenger nonfleet automobile insurance policies, effective October 1, 2020.

• Requires rating plans for private passenger nonfleet automobile insurance with territorial classifications to assign 75% weight to individual territorial loss cost indication and 25% weight to state-wide average loss cost indication.

• Permits use of credit history for other personal risk insurance types only if insurers file financial history measurement programs with the insurance commissioner and comply with specific disclosure and consumer protection requirements.

• Prohibits insurers from using certain credit-related characteristics including credit inquiry counts, disputed credit information, medical collection accounts, and lack of credit history (unless treated as neutral).

• Allows applicants to request insurers consider "extraordinary life circumstances" (such as catastrophic illness, divorce, job loss, or identity theft occurring within three years) when credit has been adversely impacted, requiring insurers to grant reasonable exceptions to rates or underwriting rules.