Citations Affected: IC 27-2-21-16.
Synopsis: Insurer use of credit information. Removes a provision
prohibiting an insurer that uses credit information to underwrite or rate
personal insurance risks from using the credit information unless the
insurer recalculates the insurance score or obtains a new credit report
at least once every 36 months, except in certain circumstances.
Effective: July 1, 2007.
January 16, 2007, read first time and referred to Committee on Insurance.
A BILL FOR AN ACT to amend the Indiana Code concerning
consumer as approved by the commissioner.
(B) Treats the consumer as if the consumer had neutral credit information, as defined by the insurer.
(6) Take an adverse action against a consumer based on credit information unless the insurer obtains and uses:
(A) a credit report issued; or
(B) an insurance score calculated;
not more than ninety (90) days before the date the personal insurance policy is first written or the renewal is issued.
(7) Use credit information unless the insurer recalculates the
insurance score or obtains an updated credit report at least every
thirty-six (36) months. However, the following apply:
(A) At annual renewal, upon the request of an insured or the
insured's agent, the insurer shall re-underwrite and re-rate the
personal insurance policy based on a current credit report or
insurance score unless one (1) of the following applies:
(i) The insurer's treatment of the consumer is otherwise
approved by the commissioner.
(ii) The insured is in the most favorably priced tier of the
insurer, within a group of affiliated insurers.
(iii) Credit information was not used for underwriting or
rating the insured when the personal insurance policy was
(iv) The insurer reevaluates the insured at least every
thirty-six (36) months after a personal insurance policy is
issued based on underwriting or rating factors other than
This clause does not require an insurer to recalculate an
insurance score or obtain an updated credit report of a
consumer more frequently than one (1) time in a twelve (12)
(B) An insurer may obtain current credit information upon the
renewal of a personal insurance policy when renewal occurs
more frequently than every thirty-six (36) months if consistent
with the insurer's underwriting guidelines.
(8) (7) Use the following as a negative factor in an insurance
scoring methodology or in reviewing credit information for the
purpose of underwriting or rating a personal insurance policy:
(A) A credit inquiry:
(i) not initiated by the consumer; or
(ii) requested by the consumer for the consumer's own credit information.