1     
MOTOR VEHICLE INSURANCE MODIFICATIONS

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Paul Ray

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to motor vehicle insurance.
10     Highlighted Provisions:
11          This bill:
12          ▸     prohibits an insurer that issues a motor vehicle related insurance policy from using
13     an individual's credit information for determining initial underwriting.
14     Money Appropriated in this Bill:
15          None
16     Other Special Clauses:
17          None
18     Utah Code Sections Affected:
19     AMENDS:
20          31A-22-320, as last amended by Laws of Utah 2008, Chapter 382
21     

22     Be it enacted by the Legislature of the state of Utah:
23          Section 1. Section 31A-22-320 is amended to read:
24          31A-22-320. Use of credit information.
25          (1) For purposes of this section:
26          [(b)] (a) (i) Except as provided in Subsection (1)[(b)](a)(ii), "consumer report" is as
27     defined in 15 U.S.C. 1681a.
28          (ii) "Consumer report" does not include:
29          (A) a motor vehicle record obtained from a state or an agency of a state; or
30          (B) any information regarding an applicant's or insured's insurance claim history.
31          [(a)] (b) "Credit information" means:
32          (i) a consumer report;
33          (ii) a credit score;
34          (iii) any information obtained by the insurer from a consumer report;
35          (iv) any part of a consumer report; or
36          (v) any part of a credit score.
37          (c) (i) "Credit score" means a numerical value or a categorization that is:
38          (A) derived from information in a consumer report;
39          (B) derived from a statistical tool or modeling system; and
40          (C) developed to predict the likelihood of:
41          (I) future insurance claims behavior; or
42          (II) credit behavior.
43          (ii) "Credit score" includes:
44          (A) a risk predictor; or
45          (B) a risk score.
46          (iii) A numerical value or a categorization described in Subsection (1)(c)(i) is a credit
47     score if it is developed to predict the behavior described in Subsection (1)(c)(i)(C) regardless of
48     whether it is developed to predict other factors in addition to predicting the behavior described
49     in Subsection (1)(c)(i)(C).
50          (d) "Motor vehicle related insurance policy" means:
51          (i) a motor vehicle liability policy;
52          (ii) a policy that contains uninsured motorist coverage;
53          (iii) a policy that contains underinsured motorist coverage;
54          (iv) a policy that contains property damage coverage under this part; or
55          (v) a policy that contains personal injury coverage under this part.
56          (2) An insurer that issues a motor vehicle related insurance policy:
57          (a) except as provided in Subsection (2)(b), may not use credit information for the
58     purpose of determining for the motor vehicle related insurance policy:
59          (i) renewal;
60          (ii) nonrenewal;
61          (iii) termination;
62          (iv) eligibility;
63          (v) underwriting; or
64          (vi) rating; and
65          (b) notwithstanding Subsection (2)(a), may use credit information for the purpose of[:
66     (i) if risk related factors other than credit information are considered, determining initial
67     underwriting; or (ii)] providing to an insured:
68          [(A)] (i) a reduction in rates paid by the insured for the motor vehicle related insurance
69     policy; or
70          [(B)] (ii) any other discount similar to the reduction in rates described in Subsection
71     (2)(b)[(ii)(A)](i).
72          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
73     commissioner may make rules necessary to enforce this section.




Legislative Review Note
Office of Legislative Research and General Counsel