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
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