Personal Insurance. 
Personal insurance refers to the following types of insurance policies:

•  private passenger automobile coverage;
•  homeowner's coverage, including mobile homeowner's, manufactured homeowner's, condominium owners, and renter's coverage;
•  dwelling property coverage;
•  earthquake coverage for a residence and personal property;
•  personal liability and theft coverage;
•  personal inland marine coverage; and
•  mechanical breakdown coverage for personal auto or home appliances.

 
Credit History and Insurance Scores. 
Credit history is any information provided by a consumer reporting agency on a consumer's creditworthiness, credit standing, or credit capacity.  The term "insurance score" in the Insurance Code is defined as a number or rating that is derived from an algorithm, computer application, model, or other process that is based in whole or in part on credit history.  Credit history may only be used if the insurance scoring models are filed with the Office of the Insurance Commissioner by the insurer.
 
Use of Credit History in Insurance. 
Insurers are prohibited from canceling or refusing to renew personal insurance based in whole or in part on a consumer's credit history or insurance score.  Additionally, an insurer may use credit history to deny personal insurance only in combination with other substantive underwriting factors.  Insurers are also prohibited from denying insurance coverage or determining premiums or rates based on:  (1) the absence of credit history or the inability to determine the consumer's credit history; (2) the number of credit inquiries; (3) credit history or an insurance score based on collection accounts identified with a medical industry code; (4) the initial purchase or finance of a vehicle or house that adds a new loan to the consumer's existing credit history, if evident from the consumer report; (5) the consumer's use of a particular type of credit card, charge card, or debit card; or (6) the consumer's total available line of credit.

 
Written Notifications to Insureds.
Renewing Insurance Policies.  
If an insurer wishes to renew an insured's insurance policy, then at least 20 days before the insurance policy's expiration date the insurer must communicate to the insured in writing, either directly or through its agent, the insurer's willingness to renew, and include in that writing a statement of the amount of the premium or portion of the premium required to be paid by the insured to renew the policy.  This 20-day notice to the insured must also include the amount of any increased premium resulting from a change of rates and, generally, an explanation of any change in the contract provisions.  If the 20-day notice to the insured does not include the amount of any increased premium resulting from a change of rates and an explanation of any change in the contract provisions, the insurer must generally renew the policy according to the rates and contract provisions applicable to the expiring policy.
 
Adverse Actions.  
An insurer that takes adverse action against a consumer based in whole or in part on credit history or insurance score must provide written notice to the applicant or named insured.  Adverse actions include:  (1) cancellation, denial, or nonrenewal of personal insurance coverage; (2) charging a higher premium for personal insurance than would have been offered if the credit history or insurance score had been more favorable; or (3) any reduction or adverse or unfavorable change in the terms of coverage or amounts of any personal insurance due to a consumer's credit history or insurance score.  The required adverse action notice must state the significant factors of the credit history or insurance score that resulted in the adverse action.  The insurer must inform the consumer that the consumer is entitled to a free copy of the consumer's credit report under the federal Fair Credit Reporting Act.

Reasonable Exception.

Upon written request of an insured or an applicant for insurance, an insurer that uses credit information must provide reasonable exceptions to their rates, rating classifications, company or tier placement, or underwriting rules or guidelines for applicants or insureds whose credit information has been directly influenced by:

• a catastrophic event, as declared by the federal or state government;
• serious illness or injury, or serious illness or injury to an immediate family member;
• the death of a spouse, child, or parent;
• divorce or involuntary interruption of legally owed alimony or support payments;
• identity theft;
• temporary loss of employment for a period of three months or more, if it results from involuntary termination;
• military deployment overseas; or
• other events, as determined by the insurer.

If an insured or applicant submits a request for an exception, an insurer may, in its sole discretion:

• require the consumer to provide reasonable, written, and independently verifiable documentation of the event;
• require the consumer to demonstrate that the event had a direct and meaningful impact on the consumer's credit information;
• require that such request be made no more than 60 days from the date of the application for insurance or the policy renewal;
• grant an exception despite the consumer not providing the initial request for an exception in writing; and
• grant an exception when the consumer asks for consideration of repeated events or the insurer has considered this event previously.

An insurer must inform a consumer in writing, or in the same manner a consumer made a request, of the outcome of the consumer's request for a reasonable exception within 30 days of the insurer's receipt of sufficient documentation of an applicable event.  If an insurer grants an exception, it may not be considered out of compliance with any law or rule regarding underwriting, rating, or rate filing.  

Insurers must provide notice to consumers that reasonable exceptions are available, and information regarding how a consumer may inquire about such exception.