Introduced Version




Citations Affected: IC 27-1-22-25.5 .

Synopsis: Use of credit records by auto insurance companies. Provides that: (1) a motor vehicle insurance rating plan may not use, as a rating factor, adverse credit report information; and (2) a motor vehicle insurer may not consider adverse credit report information in certain underwriting activities.

Effective: July 1, 2003.


    January 15, 2003, read first time and referred to Committee on Insurance and Financial Institutions.


First Regular Session 113th General Assembly (2003)

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

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 27-1-22-25.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: 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.
    (e) In:
        (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.