A bill by Assemblyman Thomas M. Calderon (D-Montebello) that would prohibit insurance carriers from refusing to issue or renew an auto insurance policy based solely on an individual’s credit rating was approved by the Assembly Appropriations Committee.
AB 5 would prohibit insurers from dropping or refusing to issue a policy to someone or refusing them a good driver discount based on their credit history. Specifically, Calderon’s bill would:
• Prohibit an insurer from refusing to issue or renew a private passenger’s auto insurance policy based solely on an individual’s credit rating.
• Prohibit an insurer from taking into account any items appearing on a consumer credit report that are being disputed by the insured or potential insured with a consumer credit reporting company.
• Authorize the Insurance Commissioner to fine an insurer up to $5,000 for each act, or if the act is willful, up to $10,000.
Topics Claims Commercial Lines Workers' Compensation Business Insurance
Was this article valuable?
Here are more articles you may enjoy.
State Farm Adjuster’s Opinion Does Not Override Policy Exclusion in MS Sewage Backup
Florida Regulators Crack the Whip on Auto Warranty Firm, Fake Certificates of Insurance
Experian Launches Insurance Marketplace App on ChatGPT
US Supreme Court Rejects Trump’s Global Tariffs 

