SENATE BILL REPORT

                   SB 6577

                    As of January 24, 1996

Title:  An act relating to automobile insurance.

Brief Description:  Restricting the use of credit history for automobile insurance.

Sponsors:  Senator Prentice.

Brief History:

Committee Activity:  Financial Institutions & Housing: 

SENATE COMMITTEE ON FINANCIAL INSTITUTIONS & HOUSING

Staff:  Catherine Mele (786-7470)

Background:  Concern has been expressed that applicants for, or holders or, automobile insurance policies have been either declined, cancelled, or had their rates increased solely on the basis of financial information contained in their credit history.

Summary of Bill:  An insurer may not consider credit history as a factor in determining eligibility for automobile insurance, or in determining the rates charged for an automotive insurance policy.  The term "credit history" means the financial information contained on a consumer's credit report.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.