H.F. 3589 Summary

• Insurers cannot reject, cancel, or nonrenew private passenger motor vehicle or homeowner's insurance policies based solely on credit information without considering other underwriting factors.

• Insurers using credit information must disclose to consumers that credit will be obtained and provide detailed explanations of how credit information affects rates, including specific time periods in months or years for each credit data item analyzed.

• Insurance inquiries and non-consumer-initiated inquiries cannot be used in credit or insurance scoring processes.

• Insurers must exclude credit as a factor in policy decisions when credit scores cannot be generated due to absence of credit history, and must provide underwriting exceptions for applicants whose credit is adversely affected by catastrophic illness, job loss, or family death.

• Credit scoring methodologies cannot incorporate gender, race, nationality, or religion, and insurers must file their scoring methodology and supporting information with the commissioner; effective date is August 1, 2022.