Citations Affected:
IC 27-1-22-25.5.
Synopsis: Use of credit records by auto insurance companies. Provides
that a motor vehicle insurance rating plan filed with the insurance
commissioner may not use adverse information on an individual's
credit report as a rating factor. Prohibits an issuer, in deciding whether
to issue or setting the premium for a motor vehicle insurance policy,
from considering adverse information on the credit report of an
individual who would be covered under the policy as a named insured
or the spouse or family member of a named insured.
Effective: July 1, 2000.
January 10, 2000, read first time and referred to Committee on Insurance and Financial
Institutions.
A BILL FOR AN ACT to amend the Indiana Code concerning
insurance.
SECTION 1.
IC 27-1-22-25.5
IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2000]: Sec. 25.5. (a) This section applies only
to an applicant or a policyholder who is an individual.
(b) As used in this section, "insurer" has the meaning set forth
in
IC 27-1-2-3
(x).
(c) As used in this section, "motor vehicle insurance" means any
type of insurance described in
IC 27-1-5-1
, Class 2(f).
(d) A motor vehicle insurance rating plan filed under section 4
of this chapter may not use adverse information on an individual's
credit report as a rating factor.
(e) In:
(1) deciding whether to issue; or
(2) setting the premium for;
a motor vehicle insurance policy, an insurer may not consider
adverse information on the credit report of an individual who
would be covered under the policy as a named insured or the
spouse or family member of a named insured.
(f) This section is not intended to conflict with any disclosure
provisions of state law or the federal Truth in Lending Act (15
U.S.C. 1601 et seq.) applying to lending institutions, credit bureaus,
or other credit service organizations that maintain or distribute
credit histories on insurance applicants or policyholders.