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92_HB2419ham002
LRB9207370JSpcam01
1 AMENDMENT TO HOUSE BILL 2419
2 AMENDMENT NO. . Amend House Bill 2419, AS AMENDED,
3 by replacing everything after the enacting clause with the
4 following:
5 "Section 5. The Illinois Insurance Code is amended by
6 changing Section 1011 and adding Section 155.37 as follow:
7 (215 ILCS 5/155.37 new)
8 Sec. 155.37. Use of credit information in underwriting.
9 (a) If an insurer, or an agent on behalf of an insurer,
10 uses credit criteria or a credit score, in whole or in part,
11 as a reason to cancel or refuse to renew coverage or to
12 refuse to underwrite for a particular insurance risk or class
13 of risk, the credit criteria or credit score must be
14 established and used in a manner that:
15 (1) is not based, in whole or in part, on the
16 income, gender, race, color, religion, or national origin
17 of an applicant or insured; and
18 (2) otherwise complies with Article XXVI of this
19 Code.
20 (b) The credit criteria or credit scoring may not be
21 used as a sole determinant for either the refusal to issue or
22 the refusal to renew a policy.
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1 (215 ILCS 5/1011) (from Ch. 73, par. 1065.711)
2 Sec. 1011. Reasons for Adverse Underwriting Decisions.
3 (A) In the event of an adverse underwriting decision the
4 insurance institution or agent responsible for the decision
5 shall:
6 (1) either provide the applicant, policyholder or
7 individual proposed for coverage with the specific reason
8 or reasons for the adverse underwriting decision in
9 writing or advise such person that upon written request
10 he or she may receive the specific reason or reasons in
11 writing;, and
12 (2) provide the applicant, policyholder or
13 individual proposed for coverage with a summary of the
14 rights established under subsection (B) and Sections 1009
15 and 1010 of this Article; and.
16 (3) if the adverse underwriting decision is based
17 upon a report of credit worthiness, credit standing, or
18 credit capacity that a company receives from a consumer
19 reporting agency, the company must also provide in
20 writing to the applicant, policyholder, or individual
21 proposed for coverage the specific reason or reasons,
22 including credit score, codes, or other credit-based
23 information used by the company in its underwriting, and
24 if the information is based upon a credit score or code,
25 the company must provide a written, easily understandable
26 explanation of the score or code and the name, address,
27 and telephone number of the consumer reporting agency
28 that provided the information.
29 (B) Upon receipt of a written request within 90 business
30 days from the date of the mailing of notice or other
31 communication of an adverse underwriting decision to an
32 applicant, policyholder or individual proposed for coverage,
33 the insurance institution or agent shall furnish to such
34 person within 21 business days from the date of receipt of
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1 such written request:
2 (1) the specific reason or reasons for the adverse
3 underwriting decision, in writing, if such information
4 was not initially furnished in writing pursuant to
5 paragraph (1) of subsection (A);
6 (2) the specific items of personal and privileged
7 information that support those reasons; provided,
8 however:
9 (a) the insurance institution or agent shall
10 not be required to furnish specific items of
11 privileged information if it has reasonable
12 suspicion, based upon specific information available
13 for review by the Director, that the applicant,
14 policyholder or individual proposed for coverage has
15 engaged in criminal activity, fraud, material
16 misrepresentation or material nondisclosure, and
17 (b) specific items of medical-record
18 information supplied by a medical-care institution
19 or medical professional shall be disclosed either
20 directly to the individual about whom the
21 information relates or to a medical professional
22 designated by the individual and licensed to provide
23 medical care with respect to the condition to which
24 the information relates, whichever the insurance
25 institution or agent prefers; and
26 (3) the names and addresses of the institutional
27 sources that supplied the specific items of information
28 pursuant to paragraph (2) of subsection (B); provided,
29 however, that the identity of any medical professional or
30 medical-care institution shall be disclosed either
31 directly to the individual or to the designated medical
32 professional, whichever the insurance institution or
33 agent prefers.
34 (C) The obligations imposed by this Section upon an
-4- LRB9207370JSpcam01
1 insurance institution or agent may be satisfied by another
2 insurance institution or agent authorized to act on its
3 behalf.
4 (D) When an adverse underwriting decision results solely
5 from an oral request or inquiry, the explanation of reasons
6 and summary of rights required by subsection (A) may be given
7 orally.
8 (Source: P.A. 82-108.)
9 Section 99. Effective date. This Act takes effect upon
10 becoming law.".