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92_HB2419eng HB2419 Engrossed LRB9207370JSpc 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 1011 and adding Section 155.37 as follow: 6 (215 ILCS 5/155.37 new) 7 Sec. 155.37. Use of credit information in underwriting. 8 (a) If an insurer, or an agent on behalf of an insurer, 9 uses credit criteria or a credit score, in whole or in part, 10 as a reason to cancel or refuse to renew coverage or to 11 refuse to underwrite for a particular insurance risk or class 12 of risk, the credit criteria or credit score must be 13 established and used in a manner that: 14 (1) is not based, in whole or in part, on the 15 income, gender, race, color, religion, or national origin 16 of an applicant or insured; and 17 (2) otherwise complies with Article XXVI of this 18 Code. 19 (b) The credit criteria or credit scoring may not be 20 used as a sole determinant for either the refusal to issue or 21 the refusal to renew a policy. 22 (215 ILCS 5/1011) (from Ch. 73, par. 1065.711) 23 Sec. 1011. Reasons for Adverse Underwriting Decisions. 24 (A) In the event of an adverse underwriting decision the 25 insurance institution or agent responsible for the decision 26 shall: 27 (1) either provide the applicant, policyholder or 28 individual proposed for coverage with the specific reason 29 or reasons for the adverse underwriting decision in 30 writing or advise such person that upon written request HB2419 Engrossed -2- LRB9207370JSpc 1 he or she may receive the specific reason or reasons in 2 writing;
, and3 (2) provide the applicant, policyholder or 4 individual proposed for coverage with a summary of the 5 rights established under subsection (B) and Sections 1009 6 and 1010 of this Article; and .7 (3) if the adverse underwriting decision is based 8 upon a report of credit worthiness, credit standing, or 9 credit capacity that a company receives from a consumer 10 reporting agency, the company must also provide in 11 writing to the applicant, policyholder, or individual 12 proposed for coverage the specific reason or reasons, 13 including credit score, codes, or other credit-based 14 information used by the company in its underwriting, and 15 if the information is based upon a credit score or code, 16 the company must provide a written, easily understandable 17 explanation of the score or code and the name, address, 18 and telephone number of the consumer reporting agency 19 that provided the information. 20 (B) Upon receipt of a written request within 90 business 21 days from the date of the mailing of notice or other 22 communication of an adverse underwriting decision to an 23 applicant, policyholder or individual proposed for coverage, 24 the insurance institution or agent shall furnish to such 25 person within 21 business days from the date of receipt of 26 such written request: 27 (1) the specific reason or reasons for the adverse 28 underwriting decision, in writing, if such information 29 was not initially furnished in writing pursuant to 30 paragraph (1) of subsection (A); 31 (2) the specific items of personal and privileged 32 information that support those reasons; provided, 33 however: 34 (a) the insurance institution or agent shall HB2419 Engrossed -3- LRB9207370JSpc 1 not be required to furnish specific items of 2 privileged information if it has reasonable 3 suspicion, based upon specific information available 4 for review by the Director, that the applicant, 5 policyholder or individual proposed for coverage has 6 engaged in criminal activity, fraud, material 7 misrepresentation or material nondisclosure, and 8 (b) specific items of medical-record 9 information supplied by a medical-care institution 10 or medical professional shall be disclosed either 11 directly to the individual about whom the 12 information relates or to a medical professional 13 designated by the individual and licensed to provide 14 medical care with respect to the condition to which 15 the information relates, whichever the insurance 16 institution or agent prefers; and 17 (3) the names and addresses of the institutional 18 sources that supplied the specific items of information 19 pursuant to paragraph (2) of subsection (B); provided, 20 however, that the identity of any medical professional or 21 medical-care institution shall be disclosed either 22 directly to the individual or to the designated medical 23 professional, whichever the insurance institution or 24 agent prefers. 25 (C) The obligations imposed by this Section upon an 26 insurance institution or agent may be satisfied by another 27 insurance institution or agent authorized to act on its 28 behalf. 29 (D) When an adverse underwriting decision results solely 30 from an oral request or inquiry, the explanation of reasons 31 and summary of rights required by subsection (A) may be given 32 orally. 33 (Source: P.A. 82-108.) HB2419 Engrossed -4- LRB9207370JSpc 1 Section 99. Effective date. This Act takes effect upon 2 becoming law.
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