Senate Bill No. 576

(By Senator Love)

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[Introduced February 21, 2000; referred to the Committee on Banking and Insurance.]
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A BILL to amend and reenact section three, article six-b, chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to amend and reenact section six, article seventeen-a of said chapter, all relating to prohibiting the declination of automobile liability insurance and homeowner's insurance solely based on adverse credit reports.

Be it enacted by the Legislature of West Virginia:
That section three, article six-b, chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that section six, article seventeen-a of said chapter be amended and reenacted, all to read as follows:
ARTICLE 6B. DECLINATION OF AUTOMOBILE LIABILITY INSURANCE.
§33-6B-3. Declinations; prohibited reasons.

The declination of an application for a policy of automobile liability insurance by an insurer, agent or broker is prohibited if the declination is:
(a) Based upon the race, religion, nationality or ethnic group, of the applicant or named insured;
(b) Based solely upon the lawful occupation or profession of the applicant or named insured, unless such the decision is for a business purpose which is not a mere pretext for unfair discrimination: Provided, That this provision shall does not apply to any insurer, agent or broker which limits its market to one lawful occupation or profession or to several related lawful occupations or professions;
(c) Based upon the principal location of the insured motor vehicle unless such the decision is for a business purpose which is not a mere pretext for unfair discrimination;
(d) Based solely upon the age, sex or marital status of an applicant or an insured, except that this subsection shall does not prohibit rating differentials based on age, sex or marital status;
(e) Based upon the fact that the applicant has previously obtained insurance coverage with a substandard insurance carrier;
(f) Based upon the fact that the applicant has not previously been insured;
(g) Based upon the fact that the applicant did not have insurance coverage for a period of time prior to the application;
(h) Based upon the fact that the applicant or named insured previously obtained insurance coverage through a residual market insurance mechanism;
(i) 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) Based solely upon an adverse credit report or adverse credit scoring.
Nothing in this section shall may be construed as prohibiting 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.

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

No insurer may decline to issue or terminate a policy or insurance subject to this article if the declination or termination is:
(a) Based upon the race, religion, nationality, ethnic group, age, sex or marital status of the applicant or named insured;
(b) Based solely upon the lawful occupation or profession of the applicant or named insured, unless such the decision is for a business purpose which is not a mere pretext for unfair discrimination: Provided, That this provision shall does not apply to any insurer, agent or broker which limits its market to one lawful occupation or profession or to several related lawful occupations or professions;
(c) Based upon the age or location of the residence of the applicant or named insured unless the decision is for a business purpose which is not a mere pretext for unfair discrimination or unless the age or location materially affects the risk;
(d) 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) Based upon the fact that the applicant or named insured previously obtained insurance coverage through a residual market insurance mechanism;
(f) Based upon the fact that the applicant has not previously been insured; or
(g) Based upon the fact that the applicant did not have insurance coverage for a period of time prior to the application; or
(j) Based solely upon an adverse credit report or adverse credit scoring.




NOTE: The purpose of this bill is to prohibit the declination of automobile liability insurance and homeowner's insurance solely based on adverse credit reports.

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