Requires an insurer who obtains a consumer's credit report to provide a copy of the credit report to the applicant
The implementation of HB 1163 would directly impact state laws governing the insurance industry, particularly the practices surrounding the disclosure of credit information to consumers. By requiring insurers to provide consumers with a copy of their credit report, the bill aims to ensure that consumers are aware of and can review the information that may influence their insurance rates. This could potentially lead to more informed consumers who can contest inaccuracies or seek remediation based on their credit reports.
House Bill 1163, authored by Representative Katrina Jackson, mandates that insurers who obtain a consumer's credit report when writing personal insurance must provide a copy of that credit report to the applicant. The bill builds upon existing law, which already requires insurers to disclose the possibility of obtaining credit information but does not require that the applicant receive a copy of the report. By enacting this requirement, HB 1163 aims to enhance consumer rights and transparency in the insurance process.
The general sentiment surrounding HB 1163 appears to be positive among consumer advocacy groups who support measures that enhance transparency and protect consumer rights within the insurance sector. By providing consumers access to their credit reports, the bill is seen as a significant step toward fostering fairer insurance practices. However, some stakeholders in the insurance industry may view the requirement as an additional regulatory burden, raising concerns about operational implications and costs associated with the implementation of the law.
Notable points of contention surrounding HB 1163 may include discussions on the administrative feasibility for insurers to comply with the new requirement to distribute credit reports to consumers. Additionally, there may be debates regarding the balance between regulatory oversight and the potential costs that insurers will incur, which could ultimately be passed on to consumers in the form of higher premiums. Overall, the bill reflects a growing push for greater consumer rights in the context of credit reporting and insurance underwriting.