PRINTER'S NO. 2396
No. 1588 Session of 2002
INTRODUCED BY LAVALLE, KITCHEN, KUKOVICH, MUSTO, COSTA, MADIGAN,
M. WHITE, LOGAN, PUNT, RHOADES, WOZNIAK, STACK AND SCHWARTZ,
NOVEMBER 19, 2002
REFERRED TO BANKING AND INSURANCE, NOVEMBER 19, 2002
AN ACT
1 Amending Title 75 (Vehicles) of the Pennsylvania Consolidated
2 Statutes, prohibiting the use of credit scoring.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Title 75 of the Pennsylvania Consolidated
6 Statutes is amended by adding a section to read:
7 § 1706. Use of credit scoring prohibited.
8 (a) Prohibition.--An insurer shall not cancel or refuse to
9 issue or renew a policy of automobile insurance based on the
10 credit rating of a policyholder or applicant which the insurer
11 deems to be unsatisfactory. An insurer shall also be prohibited
12 from imposing a surcharge or applying a rating factor on a
13 policy based on the use of a credit rating as an underwriting
14 standard.
15 (b) Definitions.--As used in this section, the following
16 words and phrases shall have the meanings given to them in this
17 subsection:
1 "Policy of automobile insurance" or "policy." The term shall
2 have the same meaning as given to it in section 2001 of the act
3 of May 17, 1921 (P.L.682, No.284), known as The Insurance
4 Company Law of 1921.
5 "Renewal" or "to renew." The term shall have the same
6 meaning as given to it in section 2001 of the act of May 17,
7 1921 (P.L.682, No.284), known as The Insurance Company Law of
8 1921.
9 Section 2. This act shall take effect in 60 days.
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