State of Illinois
92nd General Assembly

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 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. 155.37.  Use of Credit report use reports in
 8    connection with 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 offer by
19    an  insurance  company  to  write a policy through an insurer
20    that is an affiliate, as defined in  Section  131.1  of  this
21    Code,  with continuous coverage does not constitute a refusal
22    to issue a policy or a nonrenewal within the meaning of  this
23    Section. "Credit report" means a collection of data regarding
24    a  consumer's  credit  history,  credit  capacity,  or credit
25    worthiness that has been assembled or evaluated by a consumer
26    reporting agency as defined in 15 USC 1681a(f).
27        (c)  If a credit report is used in conjunction with other
28    criteria to underwrite an application or renewal of a  policy
29    of  insurance,  it may not include or be based upon the race,
30    income, gender, religion, or national origin of the applicant
31    or insured.
                            -2-                LRB9212750JSpc
 1        (d)  If a credit report is used in conjunction with other
 2    criteria to refuse to issue or renew a policy  of  insurance,
 3    the  insurer shall provide the applicant or policyholder with
 4    a notice of the underwriting action taken.  For  purposes  of
 5    this  Section,  compliance with the notification requirements
 6    of the federal Fair Credit Reporting Act, 15 U.S.C.  1681  et
 7    seq.,  shall  be  considered  to  be  in compliance with this
 8    Section.
 9    (Source: P.A. 92-480, eff. 10-1-01; revised 10-17-01.)

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