HLS 10RS-1278 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2010
HOUSE BILL NO. 512
BY REPRESENTATIVE HARRISON
INSURANCE/RATES: Provides that the only credit factor that may be used in determining
insurance premiums is that relating to the payment of insurance premiums
AN ACT1
To amend and reenact R.S. 22:1503(6), (7), and (8), relative to use of credit information for2
personal insurance; to provide that the only credit factor that may be used to3
determine insurance premiums is credit information relating to payment of insurance4
premiums; to provide for definitions; to delete the requirement for filing scoring5
models with the Department of Insurance; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 22:1503(6), (7), and (8) are hereby amended and reenacted to read8
as follows: 9
ยง1503. Definitions10
For the purposes of this Subpart, the following terms shall have the following11
meanings:12
* * *13
(6) "Credit information" means any credit-related information derived from14
a credit report, found on a credit report itself, or provided on an application for15
personal insurance. that is relative to payment of insurance premiums. Information16
that is not credit-related shall not be considered "credit information", regardless of17
whether it is contained in a credit report or in an application, or is used to calculate18
an insurance score.19 HLS 10RS-1278 ORIGINAL
HB NO. 512
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(7) "Credit report" means any written, oral, or other communication of1
information by a consumer reporting agency bearing on a consumer's credit2
worthiness, credit standing, or credit capacity with respect to payment of insurance3
premiums which is used or expected to be used or collected in whole or in part for4
the purpose of serving as a the factor to determine personal insurance premiums,5
eligibility for coverage, or tier placement.6
(8) "Insurance score" means a number or rating that is derived from an7
algorithm, computer application, model, or other process that is based in whole or8
in part on credit information relative to payment of insurance premiums for the9
purposes of predicting the future insurance loss exposure of an individual applicant10
or insured.11
* * *12
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Harrison HB No. 512
Abstract: Provides that the only credit factor that may be used in determination of the
insurance premiums is credit information relating to payment of insurance premiums.
Present law allows certain credit information derived from personal insurance to be used to
determine a credit score which is then used to determine premiums for personal insurance.
Defines "personal insurance" as private passenger automobile, homeowners, motorcycle,
mobile home owners, and noncommercial dwelling fire insurance policies and boat, personal
watercraft, snowmobile, and recreational vehicle policies. Requires that such policies be
individually underwritten for personal, family, or household use. Specifies that present law
does not apply to commercial insurance.
Proposed law provides that the only credit factor that may be used in determination of
insurance premiums is credit information relating to payment of insurance premiums, as
follows:
(1)Present law defines "credit information" as any credit-related information derived
from a credit report, found on a credit report itself, or provided on an application for
personal insurance. Further provides that information that is not credit related shall
not be considered "credit information", regardless of whether it is contained in a
credit report or in an application, or is used to calculate an insurance score.
Proposed law limits "credit information" to any credit-related information derived
from a credit report, found on a credit report itself, or provided on an application for
personal insurance that is relative to payment of insurance premiums. Otherwise
retains present law. HLS 10RS-1278 ORIGINAL
HB NO. 512
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(2)Present law defines "credit report" as any written, oral, or other communication of
information by a consumer reporting agency bearing on a consumer's credit
worthiness, credit standing, or credit capacity which is used or expected to be used
or collected in whole or in part for the purpose of serving as a factor to determine
personal insurance premiums, eligibility for coverage, or tier placement.
Proposed law instead defines "credit report" as a written, oral, or other
communication of information by a consumer reporting agency bearing on a
consumer's credit worthiness, credit standing, or credit capacity with respect to
payment of insurance premiums which is used or expected to be used or collected
in whole for the purpose of serving as the factor to determine personal insurance
premiums.
(3)Present law defines "insurance score" as a number or rating that is derived from an
algorithm, computer application, model, or other process that is based in whole or
in part on credit information for the purposes of predicting the future insurance loss
exposure of an individual applicant or insured.
Proposed law instead defines "insurance score" as a number or rating derived from
an algorithm, computer application, model, or other process that is based in whole
on credit information relative to payment of insurance premiums for the purposes of
predicting the future insurance loss exposure of an individual applicant or insured.
(5)Proposed law otherwise retains present law relative to regulation of the use of credit
information, dispute resolution and error corrections, appeals of underwriting or
rates, exemptions from the use of credit information, initial notification of credit
scoring, adverse action notification, filing of scoring models, indemnification of
producers involved in credit scoring, and the sale of policy term information by
consumer reporting agencies.
(Amends R.S. 22:1503(6), (7), and (8))