February 22, 2001
HOUSE BILL No. 2116
DIGEST OF HB 2116
(Updated February 21, 2001 1:10 PM - DI 97)
Citations Affected: Noncode.
Synopsis: Insurer credit scoring. Establishes an interim study
committee on insurer credit scoring. Requires the committee to study
the use of credit reports as an underwriting tool for the issuance of
property and casualty insurance. Specifies certain issues for
consideration by the committee. Requires a final report to the
legislative council, including proposed legislation.
Effective: July 1, 2001.
January 17, 2001, read first time and referred to Committee on Insurance, Corporations and
February 21, 2001, amended, reported _ Do Pass.
February 22, 2001
First Regular Session 112th General Assembly (2001)
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HOUSE BILL No. 2116
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: ; (01)HB2116.1.1. -->
SECTION 1. [EFFECTIVE JULY 1, 2001] (a) As used in this
SECTION, "committee" refers to the interim study committee on
insurer credit scoring established by this SECTION.
(b) There is established the interim study committee on insurer
credit scoring. The committee shall study the use of credit reports
as an underwriting tool for the issuance of property and casualty
insurance policies, including consideration of the following issues:
(1) Insurer use of credit reports as a sole underwriting tool.
(2) Disclosure of the credit scoring methodology used by an
insurer in underwriting, including designation of the
methodology as a trade secret and confidentiality.
(3) Specific factors or criteria used in the credit scoring
(4) Resolution of adverse effects to an individual due to
underwriting determinations made based on the individual's
(c) The committee consists of the following voting members:
(1) Four (4) members of the house of representatives
appointed by the speaker of the house of representatives. Not
more than two (2) members appointed under this subdivision
may be members of the same political party.
(2) Four (4) members of the senate appointed by the president
pro tempore of the senate. Not more than two (2) members
appointed under this subdivision may be members of the same
(3) One (1) member who is a representative of personal lines
property and casualty insurance companies, appointed by the
speaker of the house of representatives.
(4) One (1) member who is a representative of independent
insurance agents, appointed by the president pro tempore of
The chairman of the committee shall be appointed by the speaker
of the house of representatives from the members appointed under
(d) The committee shall operate under the policies governing
study committees adopted by the legislative council.
(e) The affirmative votes of a majority of the voting members
appointed to the committee are required for the committee to take
action on any measure, including final reports.
(f) The committee shall prepare a final report, including any
proposed legislation, and submit the final report to the legislative
(g) This SECTION expires November 1, 2001.