H.B. 110 Enrolled

MOTOR VEHICLE INSURANCE AND CREDIT
INFORMATION
2002 GENERAL SESSION
STATE OF UTAH
Sponsor: Peggy Wallace

Ron BigelowEric K. Hutchings This act modifies the Insurance Code to regulate the use of certain credit information in
making insurance decisions related to motor vehicle insurance.
This act affects sections of Utah Code Annotated 1953 as follows:
ENACTS:
31A-22-320, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 31A-22-320 is enacted to read:
31A-22-320. Use of credit information.
(1) For purposes of this section:
(a) "Credit information" means:
(i) a consumer report;
(ii) a credit score;
(iii) any information obtained by the insurer from a consumer report;
(iv) any part of a consumer report; or
(v) any part of a credit score.
(b) (i) Except as provided in Subsection (1)(b)(ii), "consumer report" is as defined in 15
U.S.C. 1681.
(ii) "Consumer report" does not include:
(A) a motor vehicle record obtained from a state or an agency of a state; or
(B) any information regarding an applicant's or insured's insurance claim history.
(c) (i) "Credit score" means a numerical value or a categorization that is:
(A) derived from information in a consumer report;
(B) derived from a statistical tool or modeling system; and

(C) developed to predict the likelihood of:
(I) future insurance claims behavior; or
(II) credit behavior.
(ii) "Credit score" includes:
(A) a risk predictor; or
(B) a risk score.
(iii) A numerical value or a categorization described in Subsection (1)(c)(i) is a credit score
if it is developed to predict the behavior described in Subsection (1)(c)(i)(C) regardless of whether
it is developed to predict other factors in addition to predicting the behavior described in Subsection
(1)(c)(i)(C).
(d) "Motor vehicle related insurance policy" means:
(i) a motor vehicle liability policy;
(ii) a policy that contains uninsured motorist coverage;
(iii) a policy that contains underinsured motorist coverage;
(iv) a policy that contains property damage coverage under this part; or
(v) a policy that contains personal injury coverage under this part.
(2) An insurer that issues a motor vehicle related insurance policy:
(a) except as provided in Subsection (2)(b), may not use credit information for the purpose
of determining for the motor vehicle related insurance policy:
(i) renewal;
(ii) nonrenewal;
(iii) termination;
(iv) eligibility;
(v) underwriting; or
(vi) rating; and
(b) notwithstanding Subsection (2)(a), may use credit information for the purpose of:
(i) if risk related factors other than credit information are considered, determining initial
underwriting; or

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(ii) providing to an insured:
(A) a reduction in rates paid by the insured for the motor vehicle related insurance policy;
or
(B) any other discount similar to the reduction in rates described in Subsection (2)(b)(ii)(A).
(3) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
commissioner may make rules necessary to enforce this section.

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