Connecticut House Bill HB06140

Connecticut 2025 Regular Session

• Introduced: 1/22/25
• Refer: 1/22/25

Caption

An Act Prohibiting The Use Of Credit History Or Race In Underwriting Automobile Liability Or Homeowners Insurance.

Impact

If enacted, HB06140 will amend title 38a of the general statutes, altering the regulatory landscape for insurance underwriting in Connecticut. This change is expected to benefit a diverse group of consumers, particularly those who may have been adversely affected by discriminatory practices in the insurance market. By removing credit history and race as criteria for underwriting, the bill aims to foster a more equitable environment where consumers are evaluated based on their actual risk instead of potentially discriminatory factors. This reform may also encourage increased competition among insurance companies to attract a broader customer base.

Summary

HB06140 is an Act aimed at enhancing consumer protections in the realm of automobile liability and homeowners insurance by prohibiting insurance companies from using credit history and race as factors in underwriting and rating these policies. Introduced by Representative Nolan, the bill seeks to address concerns about unjust discrimination in the insurance sector, ensuring that all consumers are treated fairly regardless of their credit history or racial background. The bill reflects a growing trend in legislative efforts to eliminate biases that can lead to unequal treatment in insurance pricing and availability.

Contention

The potential passage of HB06140 may generate significant debate, particularly among stakeholders in the insurance industry who may argue that the use of credit history is a legitimate measure of risk. Critics of the bill could contend that prohibiting these factors might lead to increased premiums for consumers if insurers are forced to adjust their underwriting processes. Additionally, there may be concerns about the economic implications for the insurance market, including the administrative adjustments necessary for compliance with the new regulations. Advocates of the bill, on the other hand, emphasize the importance of protecting consumers from discriminatory practices and promoting fairness in the insurance market.