093_HB0502

 
                                     LRB093 06815 JLS 06960 b

 1        AN ACT concerning insurance.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Illinois Insurance  Code  is  amended  by
 5    changing Section 155.38 as follows:

 6        (215 ILCS 5/155.38)
 7        Sec.  155.38.  Use  of  credit reports in connection with
 8    certain policies.
 9        (a)  This  Section  applies  to  policies  of   insurance
10    defined  in  subsections (a), (b), and (c) of Section 143.13,
11    except that this Section does not  apply  to  those  personal
12    lines  policies  defined  in subsection (c) of Section 143.13
13    that could be classified under clause (g) or (i) of  Class  2
14    of  Section  4 or to policies of insurance subject to Article
15    IX 1/2.
16        (b)  An insurance company authorized to  do  business  in
17    this  State  may  not  refuse  to  issue or renew a policy of
18    insurance solely  on  the  basis  of  a  credit  report.   An
19    insurance company authorized to do business in this State may
20    not  consider  an  insured's or applicant's credit report for
21    purposes of underwriting or determining  premium  rates  with
22    respect  to  personal  multi-peril property policies covering
23    real property used principally for  residential  purposes  or
24    any   household   or  personal  property  that  is  usual  or
25    incidental  to  the  occupancy  of  any  premises  used   for
26    residential  purposes  (commonly  known  as  "homeowners"  or
27    "renters"  insurance).  An  offer  by an insurance company to
28    write a policy through an insurer that is  an  affiliate,  as
29    defined  in  Section  131.1  of  this  Code,  with continuous
30    coverage does not constitute a refusal to issue a policy or a
31    nonrenewal within  the  meaning  of  this  Section.   "Credit
 
                            -2-      LRB093 06815 JLS 06960 b
 1    report"  means  a  collection  of data regarding a consumer's
 2    credit history, credit capacity, or  credit  worthiness  that
 3    has  been  assembled  or  evaluated  by  a consumer reporting
 4    agency as defined in 15 USC 1681a(f).
 5        (c)  If a credit report is used in conjunction with other
 6    criteria to underwrite an application or renewal of a  policy
 7    of  insurance,  it may not include or be based upon the race,
 8    income, gender, religion, or national origin of the applicant
 9    or insured.
10        (d)  If a credit report is used in conjunction with other
11    criteria to refuse to issue or renew a policy  of  insurance,
12    the  insurer shall provide the applicant or policyholder with
13    a notice of the underwriting action taken.  For  purposes  of
14    this  Section,  compliance with the notification requirements
15    of the federal Fair Credit Reporting Act, 15 U.S.C.  1681  et
16    seq.,  shall  be  considered  to  be  in compliance with this
17    Section.
18    (Source: P.A. 92-480, eff. 10-1-01; 92-651, eff. 7-11-02.)