MITCHELL,BILL AND SOMMER.
INS ADVERSE DECISION NOTICE
Synopsis of Bill as introduced:
Amends the Illinois Insurance Code. Provides that if an
insurance company makes an adverse underwriting decision, the company
must disclose the basis for the decision to the affected individual.
Requires disclosure of information related to credit worthiness when
the adverse underwriting decision is based upon a report of credit
worthiness. Effective immediately.
HOUSE AMENDMENT NO. 1.
Replaces the substance of the bill. Provides that an insurer may
base underwriting decisions on credit worthiness. Provides that the
decisions may not be made in a manner that constitutes an unfair or
HOUSE AMENDMENT NO. 2.
Adds reference to:
215 ILCS 5/1011 from Ch. 73, par. 1065.711
Replaces everything after the enacting clause. Amends the
Illinois Insurance Code. Prohibits the use of credit criteria or
scoring as the sole determinant in making an underwriting decision.
Prohibits the use of credit information in an unlawfully
discriminatory manner. Requires insurers to disclose the source of
credit information that forms the basis of an adverse underwriting
decision. Effective immediately.
SENATE AMENDMENT NO. 1.
Deletes reference to:
215 ILCS 5/1011
Replaces everything after the enacting clause. Provides that
insurers may not refuse to issue or renew certain policies of
automobile insurance, fire and extended coverage insurance, and
personal lines insurance solely on the basis of credit reports.
Provides that if a credit report is used in conjunction with other
criteria in making an underwriting decision, the credit report may not
be based upon the race, income, gender, religion, or national origin
of the applicant, and if the decision is a denial, the identity of the
credit reporting agency must be disclosed to the applicant. Effective
January 1, 2002.
SENATE AMENDMENT NO. 2.
With respect to a provision that an offer by an insurance company
to write a policy through an affiliate does not constitute a refusal
by the insurance company, removes a restriction on offering a policy
through an affiliate that specializes in substandard risks.
SENATE AMENDMENT NO. 3.
Removes the requirement that an insurer inform an applicant or
insured of the specific reasons for a denial and identity of the
credit reporting agency when the denial is based upon a credit report.
Requires the insurer only to inform the applicant or insured of the
denial. Effective October 1, 2001.
Last action on Bill: PUBLIC ACT.............................. 92-0480
Last action date: AUG-23-2001
Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 2 SENATE - 3
END OF INQUIRY
Full Text Bill Status