PRINTER'S NO. 1255
No. 1075 Session of 2003
INTRODUCED BY WATERS, BISHOP, J. WILLIAMS, JAMES, BEBKO-JONES,
BELFANTI, BROWNE, CRUZ, DeWEESE, FABRIZIO, FREEMAN, GEORGE,
GOODMAN, HARHAI, HERSHEY, HORSEY, JOSEPHS, KIRKLAND, LEACH,
LEDERER, MAITLAND, MANDERINO, McILHATTAN, MYERS, OLIVER,
PALLONE, ROEBUCK, SAYLOR, SOLOBAY, SURRA, J. TAYLOR, THOMAS,
TIGUE, WALKO, WASHINGTON AND WHEATLEY, APRIL 7, 2003
REFERRED TO COMMITTEE ON INSURANCE, APRIL 7, 2003
AN ACT
1 Amending the act of May 17, 1921 (P.L.789, No.285), entitled, as
2 amended, "An act relating to insurance; establishing an
3 insurance department; and amending, revising, and
4 consolidating the law relating to the licensing,
5 qualification, regulation, examination, suspension, and
6 dissolution of insurance companies, Lloyds associations,
7 reciprocal and inter-insurance exchanges, and certain
8 societies and orders, the examination and regulation of fire
9 insurance rating bureaus, and the licensing and regulation of
10 insurance agents and brokers; the service of legal process
11 upon foreign insurance companies, associations or exchanges;
12 providing penalties, and repealing existing laws," providing
13 for use of credit history of insureds; and further providing
14 for penalties imposed by Insurance Department.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. The act of May 17, 1921 (P.L.789, No.285), known
18 as The Insurance Department Act of 1921, is amended by adding a
19 section to read:
20 Section 652-A. Use of credit history of insured.
21 (a) General rule.--An insurer shall not deny, cancel or
22 refuse to renew or raise the premium of personal insurance due
1 in whole or in part to an insured's credit history.
2 (b) Enforcement.--Upon satisfactory evidence of a violation
3 of this section by any insurer or insurance producer or on
4 satisfactory evidence of such conduct that would disqualify the
5 insurance producer from initial issuance of a certificate of
6 qualification under former sections 604 or 622 or under this
7 article, the department may pursue any one or more of the
8 following courses of action regardless of whether the insurance
9 producer was previously so authorized by the department:
10 (1) Suspend or revoke or refuse to renew the certificate
11 of qualification or license of the offending party or
12 parties.
13 (2) Impose a civil penalty of not more than $5,000.00
14 for each action in violation of any of the provisions of this
15 section.
16 (3) Issue an order to cease and desist.
17 (4) Impose such other conditions as the department may
18 deem appropriate.
19 (c) Rules and regulations.--The department may adopt such
20 rules and regulations as are necessary to administer this
21 section.
22 (d) Definitions.--As used in this section, the following
23 words and phrases shall have the meanings given to them in this
24 subsection:
25 "Credit history." A written, oral or other communication of
26 information by a consumer reporting agency bearing on a
27 consumer's credit worthiness, credit standing or credit
28 capacity, which is used, expected to be used or collected in
29 whole or in part for the purpose of serving as a factor in
30 establishing personal insurance premiums or eligibility for
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1 coverage.
2 "Personal insurance" means property and casualty insurance to
3 be used primarily for personal, family or household purposes,
4 such as homeowner and private passenger automobile insurance.
5 Section 2. This act shall take effect in 60 days.
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