72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1377
 
                         Senate Bill 260
 
Sponsored by Senators COURTNEY, HANNON, RINGO, Representative
  GARRARD; Senators BURDICK, CORCORAN, Representatives ACKERMAN,
  AVAKIAN, GREENLICK, HASS, KAFOURY, KRUMMEL, MERKLEY, ZAUNER
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Prohibits insurer from using credit history or insurance score
of consumer applying for or renewing personal property or
casualty insurance when making underwriting or rating decision.
 
                        A BILL FOR AN ACT
Relating to use of consumer credit information by insurers.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. { +  Section 2 of this 2003 Act is added to and made
a part of the Insurance Code. + }
  SECTION 2. { +  (1) As used in this section:
  (a) 'Consumer' means an individual policyholder of or applicant
for personal insurance.
  (b) 'Consumer reporting agency' means any person that, for
monetary fees or dues or on a cooperative nonprofit basis,
regularly engages in whole or in part in the practice of
assembling or evaluating consumer credit information or other
information about individuals for the purpose of furnishing to
third parties reports on consumers.
  (c) 'Credit history' means any written or other communication
of any information by a consumer reporting agency that:
  (A) Bears on a consumer's creditworthiness, credit standing or
credit capacity; and
  (B) Is used or expected to be used, or collected in whole or in
part, to serve as a factor in determining eligibility for
personal insurance.
  (d) 'Insurance score' means a number or rating that is derived
from an algorithm, computer application, model or other process
that is based in whole or in part on credit history.
  (e) 'Personal insurance' means personal lines of property and
casualty insurance to be used primarily for personal, family or
household purposes.
  (2) An insurer may not use the credit history or insurance
score of a consumer when making an underwriting or rating
decision about the consumer's application for issuance or renewal
of personal insurance. + }
  SECTION 3.  { + Section 2 of this 2003 Act applies to
applications for issuance or renewal of personal insurance
policies made on or after the effective date of this 2003
Act. + }
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