HB 1131 -- Insurance Credit Scoring

Sponsor:  Haywood

This bill makes several changes to the laws regarding the use of
credit information by insurance companies.  The bill:

(1)  Changes the definition of "adverse action" to have the same
meaning as provided in federal law.  Adverse action will include
cancellation, denial, or non-renewal of personal insurance
coverage or any unfavorable change in the terms of coverage,
including charging a higher premium;

(2)  Adds several specific types of insurance products to the
definition of an insurance "contract";

(3)  Repeals a provision that allows insurers to take adverse
actions against persons based on an inability to compute their
insurance credit scores;

(4)  Prohibits an insurer from using loss information in
calculating its insurance credit scores if it also uses loss
information separately to calculate its rates;

(5)  Requires insurers to use underwriting factors other than
credit information to underwrite any policy that has been in
force for more than 36 months;

(6)  Allows any insured to request a current credit report and a
re-rating of their policy at each annual renewal;

(7)  Prohibits insurers and credit reporting agencies from using
as a negative factor in underwriting any credit inquiries not
initiated by the insured, collection accounts with a medical
industry code, multiple credit inquiries within a 30-day period,
the absence of credit history, the use of a particular type of
credit or debit card, or a consumer's total available line of
credit;

(8)  Requires insurers to file their credit scoring models or
processes with the department; and

(9)  Makes any insurer's filing of a model or process related to
credit information a trade secret and protected from public
disclosure pursuant to Sections 417.450 - 417.467, RSMo.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:14 am