State of Illinois
92nd General Assembly

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 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.
                            -2-            LRB9207370JSpcam01
 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
                            -3-            LRB9207370JSpcam01
 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.".

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