100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1706
 
Introduced 2/9/2017, by Sen. Jacqueline Y. Collins
 
SYNOPSIS AS INTRODUCED:
 


215 ILCS 157/15

    Amends the Use of Credit Information in Personal Insurance Act. Makes a
technical
change in a Section concerning definitions.



LRB100 11335 SMS 21712 b

 
 
A BILL FOR
 


SB1706LRB100 11335 SMS 21712 b



1    AN ACT concerning regulation.

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

 
4    Section 5. The Use of Credit Information in Personal 
5Insurance Act is amended by changing Section 15 as follows:
 



6    (215 ILCS 157/15)



7    Sec. 15. Definitions. For the
the purposes of this Act, 
8these defined words
have the
following meanings:
9    "Adverse action" means a denial or cancellation of, an 
10increase in any charge
for, or
a reduction or other adverse or 
11unfavorable change in the terms of coverage or
amount of, any 
12insurance, existing or applied for, in connection with the

13underwriting of personal insurance.

14    "Affiliate" means any company that controls, is controlled 
15by, or is under
common
control with another company.

16    "Applicant" means an individual who has applied to be 
17covered by a personal
insurance policy with an insurer.

18    "Consumer" means an insured or an applicant for a personal 
19insurance policy
whose
credit information is used or whose 
20insurance score is calculated in the
underwriting or rating of 
21a personal insurance policy.

22    "Consumer reporting agency" means any person that, for 
23monetary fees or dues
or on a
cooperative nonprofit basis, 
 
 
SB1706- 2 -LRB100 11335 SMS 21712 b

1regularly engages in whole or in part in the
practice
of 
2assembling or evaluating consumer credit information or other 
3information on
consumers for the purpose of furnishing consumer 
4reports to third parties.

5    "Credit information" means any credit-related information 
6derived from a
credit
report, found on a credit report itself, 
7or provided on an application for
personal
insurance. 
8Information that is not credit-related shall not be considered

9"credit
information," regardless of whether it is contained in 
10a credit report or in an
application or is used to calculate an 
11insurance score.

12    "Credit report" means any written, oral, or other 
13communication of
information by a
consumer reporting agency 
14bearing on a consumer's credit worthiness, credit
standing, or 
15credit capacity, that is used or expected to be used or 
16collected
in
whole or in part for the purpose of serving as a 
17factor to determine personal
insurance premiums, eligibility 
18for coverage, or tier placement.

19    "Department" means the Department of Insurance.

20    "Insurance score" means a number or rating that is derived 
21from an algorithm,
computer
application, model, or other 
22process that is based in whole or in part on
credit
information 
23for the purposes of predicting the future insurance loss 
24exposure
of an
individual applicant or insured.

25(Source: P.A. 93-114, eff. 10-1-03.)