2544-S AMH BENS H4467

2544-S AMH BENS H4467.1

SHB 2544 - H AMD Out of Order 0330 February 18, 2002

By Representative Benson

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 48.18 RCW to read as follows:

RESTRICTIONS THAT APPLY TO PERSONAL INSURANCE UNDERWRITING. (1) For the purposes of this section:

(a) "Affiliated" has the same meaning as defined in RCW 48.31B.005(1).

(b) "Credit history" means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing, or credit capacity, which is used, or expected to be used, or collected in whole or in part for the purpose of serving as a factor in establishing personal insurance premiums or eligibility for coverage.

(c) "Personal insurance" means property and casualty insurance to be used primarily for personal, family, or household purposes, such as homeowner and private passenger auto insurance.

(2) An insurer's refusal to issue a policy of personal insurance shall not be based primarily on a person's credit history. However, as part of the initial underwriting decision an insurer may consider credit history in conjunction with other objective criteria, but credit history shall not be the predominant factor. Placement with an affiliated insurer does not constitute denial of coverage under this section.

(3) An insurer shall not cancel or refuse to renew personal insurance due in whole or in part to an insured's credit history.

(4) The commissioner may adopt rules as necessary to implement this section.

NEW SECTION. Sec. 2. Captions used in this act are not any part of the law.

NEW SECTION. Sec. 3. Section 1 of this act takes effect July 1, 2002."

SHB 2544 - H AMD

By Representative Benson

On page 1, line 1 of the title, after "purposes;" strike the remainder of the title and insert "adding a new section to chapter 48.18 RCW; creating a new section; and providing an effective date."