HB1474 Summary

• Redefines "adverse action" to align with the Fair Credit Reporting Act and explicitly includes charging higher premiums, denying coverage, or reducing coverage terms based on credit history or insurance credit scores.

• Prohibits insurers from using insurance credit scores that are calculated using income, gender, address, zip code, ethnic group, religion, marital status, education level, or nationality as factors.

• Restricts use of credit information to underwrite policies after 36 months in force unless there is a substantial change in risk, but allows reunderwriting upon consumer request at annual renewal.

• Prohibits use of specific negative factors in credit scoring including insurance inquiries, medical collection accounts, multiple mortgage or auto lender inquiries within 30 days, and absence of credit history.

• Requires insurers to file their insurance credit scoring models with the department of insurance, with such filings treated as trade secrets.