Bills · 2011-2012 Regular Session
prohibiting the use of zip codes or information in credit reports for issuing or renewing, or setting premiums for, certain types of insurance.
- Introduced, stopped here
- Passes Assembly, not reached
- Passes Senate, not reached
- Governor signs, not reached
- Law, not reached
Unfamiliar terms? Glossary
What this bill does
Plain-language analysis by the nonpartisan Legislative Reference Bureau
Current law contains prohibitions against unfairly discriminating among
policyholders by charging different premiums or offering different terms of coverage
except on the basis of classifications related to the nature and degree of risk covered.
Current law also specifies the factors on which insurance rates may be based. These
prohibitions and specifications apply to all types of insurance. Current law
specifically prohibits an insurer from using odometer reading data collected in the
course of an emissions inspection as a factor in setting rates or premiums for motor
vehicle insurance.
This bill prohibits an insurer from considering information in an individual's
credit report when issuing or renewing motor vehicle insurance or renter's or
homeowner's (property) insurance, or when setting premiums for motor vehicle or
property insurance. The bill also prohibits an insurer from considering an
individual's zip code when issuing or renewing, or when setting premiums for, motor
vehicle insurance. In addition, the bill prohibits a rating plan for motor vehicle
insurance from using information in an individual's credit report or an individual's
zip code as a rating factor, and prohibits a rating plan for property insurance from
using information in an individual's credit report as a rating factor.