HB 5297 Summary

• Prohibits insurers from using credit information or insurance scores as the sole basis for denying, canceling, or refusing to renew personal property/casualty insurance policies.

• Requires insurers to disclose to applicants that credit information may be obtained and used in underwriting, and restricts use of prohibited factors including income, gender, address, zip code, ethnicity, religion, marital status, and nationality in calculating insurance scores.

• Mandates insurers obtain credit reports no older than 90 days before applying an insurance score, and allows insureds or producers to request reexamination of scores at annual renewal (no more than once per 12-month period).

• Prohibits as negative factors in insurance scores: non-consumer-initiated credit inquiries, insurance-related inquiries, multiple mortgage inquiries within 45 days, bankruptcy information older than 10 years, and medical collection accounts.

• Requires insurers taking adverse actions based on credit information to provide clear notice listing up to 4 primary factors for the decision, and obligates reevaluation within 30 days if credit information is disputed and corrected, with refunds for any overpaid premiums.