H-3211.1 _______________________________________________
HOUSE BILL 2763
_______________________________________________
State of Washington 57th Legislature 2002 Regular Session
By Representatives Lysen, Clements and Chase
Read first time 01/28/2002. Referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to using credit history for insurance purposes; adding a new section to chapter 48.18 RCW; adding a new section to chapter 48.19 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 48.18 RCW to read as follows:
(1) For the purposes of this section:
(a) "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, that is used, or expected to be used, or collected in whole or in part for consideration as a factor in establishing personal insurance premiums or eligibility for coverage.
(b) "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.
(c) "Insurance score" means 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.
(2) A person's credit history or insurance score shall not be a factor considered by an insurer in any decision to underwrite, deny, cancel, or refuse to renew a policy of personal insurance.
(3) The commissioner may adopt rules as necessary to implement this section.
NEW SECTION. Sec. 2. A new section is added to chapter 48.19 RCW to read as follows:
(1) For the purposes of this section:
(a) "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, that is used, or expected to be used, or collected in whole or in part for consideration as a factor in establishing personal insurance premiums or eligibility for coverage.
(b) "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.
(c) "Insurance score" means 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.
(2) A person's credit history or insurance score shall not be a factor considered by an insurer in the setting or adjustment of premium rates for personal insurance.
(3) The commissioner may adopt rules as necessary to implement this section.
NEW SECTION. Sec. 3. This act takes effect July 1, 2002.
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