SB 126 - AS INTRODUCED
2001 SESSION
01/09
SENATE BILL 126
AN ACT relative to the use of certain credit data in underwriting certain insurance policies.
SPONSORS: Sen. Gordon; Dist 2; Sen. Hollingworth, Dist 23; Sen. Eaton, Dist 10; Rep. Dickinson, Carr 2
This bill declares that an established automobile or homeowners insurance policy cannot be changed based in whole or in part on a change in credit rating or credit status of an insured. Any change in such policies shall be directly related to the record of the insured.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
01-1064
01/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand One
AN ACT relative to the use of certain credit data in underwriting certain insurance policies.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Credit Rating; Credit Status; Underwriting and Rating. Amend RSA 412:14-a to read as follows:
412:14-a Use of Credit Reports, Credit Histories, and Credit Scoring Models in Underwriting and Rating.
I. The use of information contained in credit reports, credit histories, and credit scoring models for underwriting or for rating purposes shall be based upon objective, documented, and measurable standards and shall be used in a manner which affords appropriate consumer protections, including consumer notice provisions and confidentiality protections. The insurance commissioner shall, pursuant to RSA 541-A, adopt such rules as may be necessary to regulate the use of such information in the underwriting and rating of motor vehicle insurance. Underwriting models and rate filings which rely upon information in credit reports, credit histories, or credit scoring models shall be subject to express approval by the insurance department.
II. Notwithstanding any provision of law to the contrary, once a policy is established pursuant to this subdivision any rise in premium rate shall be based upon the driving record of the insured, and shall not be based in whole or in part on the credit status or credit rating of the insured.
2 Credit Rating; Credit Status; Underwriting and Rating. Amend RSA 414:3, IX to read as follows:
IX.(a) The use of credit reports, credit histories, and credit scoring models for underwriting and rating purposes shall be based upon objective, documented, and measurable standards and shall be used in a manner which affords appropriate consumer protections, including consumer notice provisions and confidentiality protections. The insurance commissioner shall, pursuant to RSA 541-A, adopt such rules as may be necessary to regulate the use of such information in the underwriting and rating of homeowners insurance. Underwriting models and rate filings which rely upon information in credit reports, credit histories, or credit scoring models shall be subject to express approval by the insurance department.
(b) Notwithstanding any provision of law to the contrary, once a rate is established for a policyholder any rate increase shall be based upon loss or other aspects of the policyholder's record, and shall not be based in whole or in part on the credit status or credit rating of the policyholder.
3 Effective Date. This act shall take effect 60 days after its passage.