WEST virginia legislature

2020 regular session

Introduced

Senate Bill 659

By Senators Rucker, Beach, Cline, and Smith

[Introduced January 30, 2020; referred
to the Committee on Banking and Insurance; and then to the Committee on the Judiciary]

A BILL to amend and reenact §33-6B-3 of the Code of West Virginia, 1931, as amended; and to amend and reenact §33-17A-6 of said code, all relating to prohibiting insurance companies from using credit ratings when establishing home and automobile insurance premiums.

Be it enacted by the Legislature of West Virginia:

ARTICLE 6B. DECLINATION OF AUTOMOBILE LIABILITY INSURANCE and setting of premiums.

§33-6B-3. Declinations; setting of premiums; prohibited reasons.

(a) The declination of an application for a private passenger policy of automobile liability insurance by an insurer, agent or broker is prohibited if the declination is:

(a) (1) Based upon the race, religion, nationality or ethnic group, of the applicant or named insured;

(b) (2) Based solely upon the lawful occupation or profession of the applicant or named insured, unless the decision is for a business purpose that is not a mere pretext for unfair discrimination: Provided, That this provision does not apply to any insurer, agent or broker that limits its market to one lawful occupation or profession or to several related lawful occupations or professions;

(c) (3) Based upon the principal location of the insured motor vehicle unless the decision is for a business purpose which is not a mere pretext for unfair discrimination;

(d) (4) Based solely upon the age, sex or marital status of an applicant or an insured, except that this subsection does not prohibit rating differentials based on age, sex or marital status;

(e) (5) Based upon the fact that the applicant has previously obtained insurance coverage with a substandard insurance carrier;

(f) (6) Based upon the fact that the applicant has not previously been insured;

(g) (7) Based upon the fact that the applicant did not have insurance coverage for a period of time prior to the application;

(h) (8) Based upon the fact that the applicant or named insured previously obtained insurance coverage through a residual market insurance mechanism;

(i) (9) Based upon the fact that another insurer previously declined to insure the applicant or terminated an existing policy in which the applicant was the named insured;

(j) (10) Based solely upon an adverse credit report or adverse credit scoring.

(b) No insurer may use credit scoring or credit rating in setting insurance premiums.

(c) Nothing in this section may be construed to prohibit an insurer, agent or broker from using legitimate, documented, underwriting data in making their own independent risk assessment of an applicant for insurance.

ARTICLE 17A. PROPERTY INSURANCE DECLINATION, TERMINATION AND DISCLOSURE and setting of premiums.

§33-17A-6. Discriminatory terminations, premium settings and declinations prohibited.

(a) No insurer may decline to issue or terminate a policy of insurance subject to this article if the declination or termination is:

(a) (1) Based upon the race, religion, nationality, ethnic group, age, sex, or marital status of the applicant or named insured;

(b) (2) Based solely upon the lawful occupation or profession of the applicant or named insured, unless the decision is for a business purpose that is not a mere pretext for unfair discrimination: Provided, That this provision does not apply to any insurer, agent or broker that limits its market to one lawful occupation or profession or to several related lawful occupations or professions;

(c) (3) Based upon the age or location of the residence of the applicant or named insured unless the decision is for a business purpose that is not a mere pretext for unfair discrimination or unless the age or location materially affects the risk;

(d) (4) Based upon the fact that another insurer previously declined to insure the applicant or terminated an existing policy in which the applicant was the named insured;

(e) (5) Based upon the fact that the applicant or named insured previously obtained insurance coverage through a residual market insurance mechanism;

(f) (6) Based upon the fact that the applicant has not previously been insured;

(g) (7) Based upon the fact that the applicant did not have insurance coverage for a period of time prior to the application; or

(h) (8) Based solely upon an adverse credit report or adverse credit scoring.

(b) No insurer may use credit scoring or credit rating in setting insurance premiums.

NOTE: The purpose of this bill is to prohibit insurance companies from using credit ratings when establishing home and automobile insurance premiums.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.