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First Substitute H.B. 110
6 Ron Bigelow 7 This act modifies the Insurance Code to regulate the use of certain credit information in
8 making insurance decisions related to motor vehicle insurance.
9 This act affects sections of Utah Code Annotated 1953 as follows:
11 31A-22-320, Utah Code Annotated 1953
12 Be it enacted by the Legislature of the state of Utah:
13 Section 1. Section 31A-22-320 is enacted to read:
14 31A-22-320. Use of credit information.
15 (1) For purposes of this section:
16 (a) "Credit information" means:
17 (i) a consumer report;
18 (ii) a credit score;
19 (iii) any information obtained by the insurer from a consumer report;
20 (iv) any part of a consumer report; or
21 (v) any part of a credit score.
22 (b) (i) Except as provided in Subsection (1)(b)(ii), "consumer report" is as defined in 15
23 U.S.C. 1681.
24 (ii) "Consumer report" does not include:
25 (A) a motor vehicle record obtained from a state or an agency of a state; or
26 (B) any information regarding an applicant's or insured's insurance claim history.
27 (c) (i) "Credit score" means a numerical value or a categorization that is:
28 (A) derived from information in a consumer report;
29 (B) derived from a statistical tool or modeling system; and
30 (C) developed to predict the likelihood of:
31 (I) future insurance claims behavior; or
32 (II) credit behavior.
33 (ii) "Credit score" includes:
34 (A) a risk predictor; or
35 (B) a risk score.
36 (iii) A numerical value or a categorization described in Subsection (1)(c)(i) is a credit score
37 if it is developed to predict the behavior described in Subsection (1)(c)(i)(C) regardless of whether
38 it is developed to predict other factors in addition to predicting the behavior described in
39 Subsection (1)(c)(i)(C).
40 (d) "Motor vehicle related insurance policy" means:
41 (i) a motor vehicle liability policy;
42 (ii) a policy that contains uninsured motorist coverage;
43 (iii) a policy that contains underinsured motorist coverage;
44 (iv) a policy that contains property damage coverage under this part; or
45 (v) a policy that contains personal injury coverage under this part.
46 (2) An insurer that issues a motor vehicle related insurance policy:
47 (a) h EXCEPT AS PROVIDED IN SUBSECTION (2)(b), h may not use credit information for the
47a purpose of determining for the motor vehicle
48 related insurance policy:
48a h (i) RENEWAL; h
49 h [
50a (iv) ELIGIBILITY;
50b (v) UNDERWRITING; OR
50c (vi) RATING; AND h
51 (b) h [
51a may use credit information for the purpose
52 of h [
52 1a OTHER THAN CREDIT INFORMATION ARE CONSIDERED, DETERMINING INITIAL UNDERWRITING;
52 1b OR
52 1c (ii) s PROVIDING TO AN INSURED:
52a S [
52b h RELATED INSURANCE POLICY; OR
52c S [
52d SUBSECTION S [
53 h [
54 (ii) underwriting; or
55 (iii) rating.
56 (3) (a) An insurer that issues a motor vehicle related insurance policy may use credit
57 h [
58 (i) in addition to the credit information, the insurer uses other criteria not related to credit
59 in making a determination described in Subsection (2)(b); and
60 (ii) the credit information is not the primary basis for the determination described in
61 Subsection (2)(b).
62 (b) For purposes of this Subsection (3), the commissioner shall by rule define under what
63 circumstances use of credit information constitutes the primary basis for a determination described
64 in Subsection (2)(b) in violation of this Subsection (3).
65 h [
66 commissioner may make rules necessary to enforce this section.
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