Citations Affected: IC 27-1-22-25.5.
Synopsis: Use of credit records by auto insurance companies. Provides
that a motor vehicle: (1) insurance rating plan may not use, as a rating
factor, adverse credit report information; and (2) insurer may not
consider adverse credit report information in certain underwriting
Effective: July 1, 2002.
January 7, 2002, read first time and referred to Committee on Insurance and Financial
A BILL FOR AN ACT to amend the Indiana Code concerning
IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2002]: Sec. 25.5. (a) This section applies only
to an applicant or a policyholder who is an individual.
(b) As used in this section, "insurer" has the meaning set forth in IC 27-1-2-3 (x).
(c) As used in this section, "motor vehicle insurance" means any type of insurance described in IC 27-1-5-1 , Class 2(f).
(d) A motor vehicle insurance rating plan filed under section 4 of this chapter may not use adverse information on an individual's credit report as a rating factor.
(1) deciding whether to issue; or
(2) setting the premium for;
a motor vehicle insurance policy, an insurer may not consider adverse information on the credit report of an individual who would be covered under the policy as a named insured or as the
spouse or family member of a named insured.
(f) This section is not intended to conflict with any disclosure provisions of state law or the federal Truth in Lending Act (15 U.S.C. 1601 et seq.) applying to lending institutions, credit bureaus, or other credit service organizations that maintain or distribute credit histories on insurance applicants or policyholders.