H-3387.1  _______________________________________________

                          HOUSE BILL 2351

          _______________________________________________

State of Washington      56th Legislature     2000 Regular Session

By Representatives Sullivan, Kastama, Reardon, O'Brien, Miloscia, Lantz, Edmonds, Conway and Ruderman

Read first time 01/11/2000.  Referred to Committee on Financial Institutions & Insurance.

Restricting the use of credit reports by insurers.

    AN ACT Relating to the use of credit reports by insurers; adding a new section to chapter 48.05 RCW; adding a new section to chapter 48.03 RCW; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 48.05 RCW to read as follows:

    (1) An insurer shall not request a credit report on an applicant or  existing policyholder if such an inquiry negatively affects the credit rating or credit score of the applicant or policyholder.  A request for a credit report by an insurer is deemed to negatively impact the applicant or policyholder unless the insurance commissioner states in writing that the insurer's procedures regarding credit reports have no negative impact on applicants or policyholders.

    (2) For purposes of this section, "credit report" means the same as "consumer report" as defined in RCW 19.182.010.

NEW SECTION. Sec. 2.  A new section is added to chapter 48.03 RCW to read as follows:

    In conducting examinations of insurers under this chapter, the commissioner shall review the insurer's use of credit reports and the insurer's compliance with section 1 of this act.

NEW SECTION. Sec. 3.  This act takes effect July 1, 2000.

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