The Professional Independent Insurance Agents of Illinois said in a statement it approves of the state Senate’s yes vote on HB 1640 Osmond (Jacobs) Insurers Use of Credit Scoring. The bill, which passed the Senate May 6 will now be sent to the governor for his consideration. The Senate approved the measure on a vote of 57-0.
HB 1640 represents a culmination of a process begun by the late Tim Osmond, a state representative and independent agent from Antioch, Ill.. Osmond sought to put together a piece of model legislation through the National Conference of Insurance Legislators (NCOIL) which could be adopted by state legislators throughout the country, restricting how insurers use credit in personal lines rating and underwriting.
However, due to Osmond’s untimely death last December, the legislation’s status was in doubt. His wife JoAnn, appointed to fill his seat, picked up the legislation and garnered over 70 cosponsors and won unanimous approval in the House. Senate Committee Chair Denny Jacobs then sponsored the bill in the Senate.
HB 1640 establishes several limitations on insurers use of credit in underwriting and rating personal lines insurance. Among the more significant provisions, the bill prohibits insurers from basing rates or denying, canceling or non-renewing coverage solely on the basis of a credit-based insurance score. It also prohibits insurers from treating applicants with no credit history negatively.
Insurers must re-underwrite and re-rate at renewal if requested by agent or insured.
Topics Agencies Legislation Illinois
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