SENATE BILL REPORT

SB 6550

BYSenators Williams, Rasmussen, Fleming, Murray, Warnke, Hansen, Bender and Rinehart

Prohibiting the use of certain credit reporting information to deny a property insurance applicant.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):January 30, 1990

Senate Staff:Gerard S. Poliquin (786-7403)

AS OF JANUARY 26, 1990

BACKGROUND:

There have been instances where insurers, in the process of deciding whether or not to provide property insurance coverage, or deciding upon the rate to charge for property insurance coverage, have used an applicant's credit report. 

SUMMARY:

Pursuant to the state insurance code, it is an unfair act or practice for an insurer to deny property insurance coverage, or decide rate charges for property insurance, based upon an applicant's credit record.

Appropriation:  none

Revenue:   none

Fiscal Note:    none requested