HB 5263
Relating to use of credit scores in applications for insurance
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- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill restricts how insurance companies in West Virginia can use credit scores when determining rates and coverage. It prohibits using the number of inquiries on a credit report or credit score report to negatively impact an insurance application if the information is disputed. Specifically, it limits the use of credit scores to those generated by banking institutions for casualty insurance rate filings and prohibits their use in homeowners or auto liability policies. The bill aims to prevent unfair discrimination based on credit history.
Key provisions
- Limits the use of credit scores to those generated by banking institutions for casualty insurance rate filings.
- Prohibits relying on false or potentially false information in credit reports or credit scores.
- Prevents credit inquiries from adversely affecting insurance applications if the information is disputed.
- Specifically prohibits the use of credit scores in homeowners and auto liability insurance rate calculations.
- Maintains the prohibition against using race, religion, nationality, or ethnic group, lawful occupation, age, sex, or marital status as reasons for denial.
- Addresses the use of manual, minimum, class rates, rating schedules, and rating plans.
- Requires rates to be reasonable and adequate for the class of risks.
- Establishes a process for disapproving filings and issuing orders if they don't meet requirements.
Who is affected
- Insurance companies
- Applicants for insurance
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