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SENATE BILL NO. 1323

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Daily Data Tracking History

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S1323.......................................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; and to provide an exception for surety insurance
contracts.
                                                                        
01/23    Senate intro - 1st rdg - to printing
01/24    Rpt prt - to Com/HuRes

Bill Text

                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1323
                                                                        
                         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  OR  CANCEL  A  POLICY  OR  COVERAGE  BASED  PRIMARILY   UPON   AN
  6        INDIVIDUAL'S  CREDIT  RATING OR CREDIT HISTORY AND TO PROVIDE EXCEPTION TO
  7        SURETY INSURANCE CONTRACTS.
                                                                        
  8    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  9        SECTION 1.  That Chapter 18, Title 41, Idaho Code, be,  and  the  same  is
 10    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 11    ignated as Section 41-1843, Idaho Code, and to read as follows:
                                                                        
 12        41-1843.  INSURANCE RATES AND CREDIT RATING. Except as provided herein, no
 13    insurer regulated pursuant to this title shall charge a higher premium or can-
 14    cel a policy or coverage based primarily upon an individual's credit rating or
 15    credit history. The provisions of this  section  shall  not  apply  to  surety
 16    insurance contracts issued pursuant to chapter 26, title 41, Idaho Code.

Statement of Purpose / Fiscal Impact

                      STATEMENT OF PURPOSE

                           RS ll663Cl

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 or 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 1323