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.
Endless Shrimp Deal Was Scheme to Squeeze Red Lobster, Suit Says
What Happens to Property Pricing in ’27, Insurance, Reinsurance Execs Ask
Ship Insurers Set for Major Claims From Iran War, Allianz Says
Virginia’s New Gun Laws Challenged by Some Local Prosecutors and Lawsuits 

