HB 5608
Prohibiting use of a person’s credit history in certain insurance transactions
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- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill prohibits insurance companies in West Virginia from using an individual’s credit history to make decisions about offering insurance, canceling policies, or adjusting premiums for passenger motor vehicles, residential property, and other personal insurance lines. Specifically, it prevents insurers from refusing coverage, increasing rates, or altering payment plans based on credit scores. The goal is to ensure fair insurance practices and reduce potential discrimination based on creditworthiness. This legislation aims to protect consumers from unfair insurance practices related to credit history.
Key provisions
- Insurance companies cannot refuse to underwrite or renew policies based on credit history.
- Insurance companies cannot increase renewal premiums based on credit history.
- Insurance companies cannot rate risks based on credit history.
- Insurance companies cannot offer discounts based on credit history.
- Insurance companies cannot assign applicants to rating tiers based on credit history.
- Insurance companies cannot place insureds with affiliated companies based on credit history.
- The bill applies to passenger motor vehicles, residential property, and other personal insurance lines.
Who is affected
- Insurance applicants
- Insured individuals
- Insurance companies
- Consumers in West Virginia
Notable changes
- This bill prohibits the use of credit history as a factor in insurance underwriting and pricing.
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