Ill. Agents Favor Gov’s Signing of Credit Bill

The Professional Independent Insurance Agents of Illinois (PIIAI) applauds Gov. Rod Blagojevich’s decision to sign HB 1640, the Use of Credit Information in Personal Insurance Act. The bill establishes limitations on how companies use credit in underwriting and rating personal lines insurance.

HB 1640 represents a culmination of a process begun by the late Tim Osmond, a State Representative and independent agent from Antioch. Osmond, with the support of the PIIAI, 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, his wife, JoAnn, was appointed to fill his seat. She picked up the legislation, garnered more than 70 cosponsors and won unanimous approval in both the House and Senate.

Senate Insurance Committee Chair, Denny Jacobs, also sponsored the bill. Jacobs played a vital role in the success of this legislation.

PIIAI recognizes the governor’s signature on HB 1640 as a proactive measure for consumers. The bill establishes several limitations on insurer use of credit in underwriting and rating personal lines insurance. Among the more significant provisions, the bill provides that insurers shall not use certain personal factors to calculate an insurance score and shall not deny, cancel, non-renew or base renewal rates solely on the basis of a credit score.

It also provides instances in which credit inquiries shall not be required as a negative factor, such as consumers requesting their own credit inquiries, or those related to insurance coverage, or lending for mortgages or autos.

Click here to view the entire text of the bill.

Topics Agencies Legislation Illinois