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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.

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Ripley, Crooks , Hasler

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    January 17, 2001, read first time and referred to Committee on Insurance, Corporations and Small Business.
    February 21, 2001, amended, reported _ Do Pass.

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PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2000 General Assembly.

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    A BILL FOR AN ACT to amend the Indiana Code concerning insurance.

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 process.
        (4) Resolution of adverse effects to an individual due to underwriting determinations made based on the individual's credit report.
    (c) The committee consists of the following voting members:

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        (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 political party.
        (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 senate.
The chairman of the committee shall be appointed by the speaker of the house of representatives from the members appointed under subdivision (1).
    (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 council.
    (g) This SECTION expires November 1, 2001.