West Virginia 2022 Regular Session

West Virginia House Bill HB2170

Introduced
1/12/22  

Caption

Relating to insurance unfair trade practices

Impact

The proposed legislation would significantly alter how insurance providers assess risk and determine policy rates for vehicle insurance. By eliminating the consideration of credit history as a factor in underwriting, it aims to create a more equitable environment for individuals who may face higher insurance costs simply based on their credit scores. The bill signifies a movement towards consumer protection and a stance against the reliance on credit histories that can disproportionately affect certain demographics.

Summary

House Bill 2170 seeks to amend the Code of West Virginia to prohibit insurance companies from using an individual's credit history in determining underwriting decisions and insurance rates for passenger motor vehicles and commercial vehicle insurance. By ensuring that credit history cannot be a factor in these important financial decisions, the bill aims to promote fairer practices within the insurance industry, thereby protecting consumers from potentially discriminatory practices that often arise from credit evaluations.

Sentiment

The reception of HB 2170 among lawmakers and advocacy groups appears to be generally positive, particularly from those advocating for consumer rights and equitable treatment. Supporters believe the legislation would reduce unfair discrimination against individuals with lower credit scores, in contrast to their actual driving records or claims history. However, there may be pushback from insurance companies concerned about risk assessment methods and their solvency, fearing that removal of credit evaluations could lead to a less accurate reflection of risk.

Contention

While the bill is viewed favorably in terms of consumer protection, it does raise questions about the potential trade-offs for insurers. Critics may argue that without using credit history, companies could face challenges in accurately pricing policies and managing risks effectively. This contention raises fundamental discussions about the balance between consumer protection and the business needs of the insurance industry, highlighting a critical debate over regulatory practices and standards.

Companion Bills

No companion bills found.

Previously Filed As

WV HB2531

Prohibiting use of a person’s credit history in certain insurance transactions

WV HB2317

Prohibiting use of a person’s credit history in certain insurance transactions

WV HB4644

Prohibiting use of a person’s credit history in certain insurance transactions

WV HB3286

Prohibiting use of a person’s credit history in certain insurance transactions

WV HB2137

Repealing the article on unfair trade practices

WV SB174

Relating to violations of the Insurance Code as unlawful trade practices.

WV HB3243

Relating to violations of the Insurance Code as unlawful trade practices.

WV HB4071

Insurance: unfair trade practices; unfair trade practices in the insurance industry; revise. Amends sec. 2025 of 1956 PA 218 (MCL 500.2025).

WV SB00343

An Act Concerning Financial Planners And The Connecticut Unfair Insurance Practices Act.

WV SB260

Revise insurance unfair trade practices act relating to certain insurers

Similar Bills

No similar bills found.