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S1408.......................................by COMMERCE AND HUMAN RESOURCES
INSURANCE RATES - Adds to existing law to provide that no insurer regulated
pursuant to Title 41, Idaho Code, shall charge a higher premium or cancel a
policy or coverage based primarily upon an individual's credit rating or
credit history; to define "based primarily"; and to limit application to
certain property or casualty insurance.
02/08 Senate intro - 1st rdg - to printing
02/11 Rpt prt - to Com/HuRes
02/22 Rpt out - rec d/p - to 2nd rdg
02/25 2nd rdg - to 3rd rdg
02/27 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
Burtenshaw, Cameron, Darrington, Davis, Deide, Dunklin, Frasure,
Geddes, Goedde, Hawkins, Hill, Ingram, Ipsen, Keough, King-Barrutia,
Little, Lodge, Marley, Noh, Richardson, Risch, Sandy, Schroeder,
Sims, Sorensen, Stegner, Stennett, Thorne, Wheeler, Williams
NAYS -- None
Absent and excused -- None
Floor Sponsor - Goedde
Title apvd - to House
02/28 House intro - 1st rdg - to Bus
03/08 Rpt out - rec d/p - to 2nd rdg
03/11 2nd rdg - to 3rd rdg
Rls susp - PASSED - 58-8-4
AYES -- Aikele, Barraclough, Barrett, Bedke, Bell, Black, Block, Boe,
Bolz, Bradford, Bruneel, Campbell, Clark, Collins, Crow, Cuddy, Deal,
Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner,
Gould, Hadley, Henbest, Higgins, Hornbeck, Jones, Kellogg, Kunz,
Lake, Langford, Loertscher, Martinez, McKague, Meyer, Montgomery,
Mortensen, Moyle, Pearce, Pischner, Pomeroy, Raybould, Ridinger,
Roberts, Robison, Sali, Schaefer, Sellman, Shepherd, Smith(33),
Smylie, Stevenson, Stone, Wood, Mr. Speaker
NAYS -- Callister, Hammond, Jaquet, Kendell, Mader, Tilman, Trail,
Young
Absent and excused -- Bieter, Harwood, Smith(23), Wheeler
Floor Sponsor - Bedke
Title apvd - to Senate
03/12 To enrol
03/13 Rpt enrol - Pres signed
Sp signed
03/14 To Governor
03/25 Governor signed
Session Law Chapter 264
Effective: 01/01/03
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE SENATE
SENATE BILL NO. 1408
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO INSURANCE CONTRACTS; AMENDING CHAPTER 18, TITLE 41, IDAHO CODE, BY
3 THE ADDITION OF A NEW SECTION 41-1843, IDAHO CODE, TO PROVIDE THAT NO
4 INSURER REGULATED PURSUANT TO TITLE 41, IDAHO CODE, SHALL CHARGE A HIGHER
5 PREMIUM THAN WOULD OTHERWISE BE CHARGED, OR CANCEL, NONRENEW OR DECLINE TO
6 ISSUE A PROPERTY OR CASUALTY POLICY OR COVERAGE BASED PRIMARILY UPON AN
7 INDIVIDUAL'S CREDIT RATING OR CREDIT HISTORY, TO DEFINE "BASED PRIMARILY"
8 AND TO LIMIT APPLICATION TO ONLY PROPERTY OR CASUALTY INSURANCE TO BE USED
9 PRIMARILY FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES; AND PROVIDING AN
10 EFFECTIVE DATE.
11 Be It Enacted by the Legislature of the State of Idaho:
12 SECTION 1. That Chapter 18, Title 41, Idaho Code, be, and the same is
13 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
14 ignated as Section 41-1843, Idaho Code, and to read as follows:
15 41-1843. INSURANCE RATES AND CREDIT RATING. (1) No insurer regulated pur-
16 suant to this title shall charge a higher premium than would otherwise be
17 charged, or cancel, nonrenew or decline to issue a property or casualty policy
18 or coverage based primarily upon an individual's credit rating or credit his-
19 tory.
20 (2) As used in this section, "based primarily" means that the weight
21 given by the insurer to an individual's credit rating or credit history
22 exceeds the weight given by the insurer to all other criteria considered in
23 making the decision to charge a higher premium or to cancel, nonrenew or
24 decline to issue an insurance policy.
25 (3) This section shall apply only to property or casualty insurance, as
26 defined in chapter 5, title 41, Idaho Code, to be used primarily for personal,
27 family or household purposes.
28 SECTION 2. This act shall be in full force and effect on and after Janu-
29 ary 1, 2003.
STATEMENT OF PURPOSE
RS 12011
The bill addresses a current problem with the underwriting of
personal insurance lines. Many insurance carriers use credit
ratings or some derivative of credit history to screen potential
applicants for insurance and determine the pricing of their
insurance. This system unfairly discriminates against those
individuals with no credit history or those with defensible past
credit problems.
FISCAL IMPACT
In a time of increasing premium tax collections, a small premium
tax decrease may result from any savings realized by prohibition
of credit scoring practices.
Contact
Name: John Goedde
Phone: 208-332-1335
Sheila Sorensen
STATEMENT OF PURPOSE/FISCAL NOTE S 1408