PRINTER'S NO. 1264
No. 1102 Session of 2005
INTRODUCED BY GEORGE, HERSHEY, DeWEESE, BARRAR, BELARDI,
BELFANTI, CALTAGIRONE, CAWLEY, CURRY, DALLY, FREEMAN,
GOODMAN, GRUCELA, HENNESSEY, JOSEPHS, KENNEY, KIRKLAND,
MANDERINO, McILHATTAN, PALLONE, PISTELLA, READSHAW, ROEBUCK,
SATHER, B. SMITH, SOLOBAY, TIGUE, WALKO, WATERS, WHEATLEY AND
SURRA, MARCH 24, 2005
REFERRED TO COMMITTEE ON INSURANCE, MARCH 24, 2005
AN ACT
1 Amending the act of July 22, 1974 (P.L.589, No.205), entitled
2 "An act relating to unfair insurance practices; prohibiting
3 unfair methods of competition and unfair or deceptive acts
4 and practices; and prescribing remedies and penalties,"
5 further providing for unfair acts; and providing for a report
6 by the Insurance Department.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 5 of the act of July 22, 1974 (P.L.589,
10 No.205), known as the Unfair Insurance Practices Act, is amended
11 by adding paragraphs to read:
12 Section 5. Unfair Methods of Competition and Unfair or
13 Deceptive Acts or Practices Defined.--(a) "Unfair methods of
14 competition" and "unfair or deceptive acts or practices" in the
15 business of insurance means:
16 * * *
17 (15) Cancelling or denying motor vehicle insurance coverage
18 based solely on the basis of information obtained from a credit
1 rating, credit history or credit scoring model.
2 (16) Increasing the rate of a person's motor vehicle
3 insurance on the basis of information obtained from a credit
4 rating, credit history or credit scoring model when a person can
5 demonstrate that the person's credit rating, credit history or
6 credit scoring model was caused by a lack of credit history.
7 * * *
8 Section 2. The Insurance Department shall report to the
9 General Assembly within one year of the effective date of this
10 section on the impact of credit ratings, credit history or
11 credit scoring models on insurance rates. Persons regulated by
12 the Insurance Department under the act shall cooperate with the
13 Insurance Department in the preparation of this report.
14 Section 3. The addition of section 5(a)(15) and (16) of the
15 act shall apply to insurance policy applications for issuance or
16 renewal made on or after the effective date of this section.
17 Section 4. This act shall take effect in 60 days.
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