Texas 2015 - 84th Regular

Texas Senate Bill SB79 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R643 SCL-F
2	2	By: Ellis S.B. No. 79
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to prohibition of the use of credit scoring in
8	8	underwriting and rating certain personal lines of insurance
9	9	coverage.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 559.001, Insurance Code, is amended by
12	12	amending Subdivision (10) and adding Subdivision (12) to read as
13	13	follows:
14	14	(10) "Insurer" means an insurer authorized to write
15	15	property and casualty insurance in this state, including an
16	16	insurance company, reciprocal or interinsurance exchange, mutual
17	17	insurance company, capital stock company, county mutual insurance
18	18	company, farm mutual insurance company, association, Lloyd's plan,
19	19	or other entity writing personal insurance in this state. The term
20	20	includes an affiliate, as described by this code, if that affiliate
21	21	is authorized to write personal insurance in this state. The term
22	22	does not include [a farm mutual insurance company or] an eligible
23	23	surplus lines insurer under this code.
24	24	(12) "Underwriting" means the selection of the risk
25	25	that will be assumed by an insurer, including the decision whether
26	26	to accept, deny, renew, nonrenew, reduce, or increase the amount of
27	27	benefits payable under an insurance policy or the types of
28	28	coverages available under an insurance policy.
29	29	SECTION 2. Section 559.002, Insurance Code, is amended to
30	30	read as follows:
31	31	Sec. 559.002. APPLICABILITY OF CHAPTER. This chapter
32	32	applies to an insurer that writes personal insurance coverage [and
33	33	uses credit information or credit reports for the underwriting or
34	34	rating of that coverage].
35	35	SECTION 3. Section 559.004, Insurance Code, is amended to
36	36	read as follows:
37	37	Sec. 559.004. RULES. [(a)] The commissioner may adopt
38	38	rules in the manner prescribed by Subchapter A, Chapter 36, as
39	39	necessary to implement this chapter.
40	40	[(b) The commissioner shall adopt rules that prescribe the
41	41	allowable differences in rates charged by insurers due solely to
42	42	the difference in credit scores.]
43	43	SECTION 4. The heading to Subchapter B, Chapter 559,
44	44	Insurance Code, is amended to read as follows:
45	45	SUBCHAPTER B. PROHIBITED USE OF CREDIT SCORING AND
46	46	CREDIT INFORMATION
47	47	SECTION 5. Section 559.051, Insurance Code, is amended to
48	48	read as follows:
49	49	Sec. 559.051. PROHIBITION ON CERTAIN [PERMISSIBLE] USE OF
50	50	CREDIT SCORING BY INSURERS. An insurer that writes a line of
51	51	insurance subject to this chapter may not:
52	52	(1) refuse to underwrite, cancel, or refuse to renew a
53	53	risk based wholly or partly on the credit report or credit score of
54	54	an insured or an applicant for insurance coverage; or
55	55	(2) rate a risk based wholly or partly on the credit
56	56	report or credit score of an insured or an applicant for insurance
57	57	coverage in any manner, including:
58	58	(A) the provision or removal of a discount;
59	59	(B) assignment of an insured or an applicant for
60	60	insurance coverage to a rating tier; or
61	61	(C) placement of an insured or an applicant for
62	62	insurance coverage with an affiliate [use credit scoring, except
63	63	for factors that constitute unfair discrimination, to develop
64	64	rates, rating classifications, or underwriting criteria regarding
65	65	lines of insurance subject to this chapter].
66	66	SECTION 6. The following laws are repealed:
67	67	(1) Sections 559.001(1) and (2), Insurance Code;
68	68	(2) Section 559.003, Insurance Code;
69	69	(3) Sections 559.052, 559.053, 559.054, 559.055,
70	70	559.056, and 559.057, Insurance Code; and
71	71	(4) Subchapters C and D, Chapter 559, Insurance Code.
72	72	SECTION 7. (a) Chapter 559, Insurance Code, as amended by
73	73	this Act, applies only to a personal insurance policy that is
74	74	delivered, issued for delivery, or renewed on or after January 1,
75	75	2016.
76	76	(b) A personal insurance policy delivered, issued for
77	77	delivery, or renewed before January 1, 2016, is governed by the law
78	78	as it existed immediately before January 1, 2016, and that law is
79	79	continued in effect for that purpose.
80	80	SECTION 8. This Act takes effect September 1, 2015.