BILL REQ. #: H-4950.1

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SUBSTITUTE HOUSE BILL 2434
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State of Washington

59th Legislature

2006 Regular Session

By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Kirby, Campbell, Chase, McDonald, Blake, Morrell, Moeller, Linville, Conway and Schual-Berke)

READ FIRST TIME 02/03/06.

AN ACT Relating to limiting the use of consumer credit histories for personal insurance renewal decisions; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature finds that there is inadequate information to determine the fairness or reasonableness regarding the use of consumer credit histories for personal insurance transactions. These histories, also known as insurance scores, are regulated under RCW 48.19.035.
     The legislature further finds consumers continue to be confused as to how and why credit histories affect their personal insurance eligibility and premiums.
     It is known that the federal trade commission is currently studying the issue of credit-based insurance scores and its effect on consumers. The insurance commissioner is directed to obtain this report when completed, and review the findings as they may apply to Washington consumers and make any recommendations to the legislature necessary to protect Washington consumers no later than one hundred eighty days after receipt of the federal trade commission report.

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