PRINTER'S NO. 668

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 602 Session of 2007


        INTRODUCED BY WATERS, BISHOP, BLACKWELL, FREEMAN, GEORGE,
           GIBBONS, JAMES, KIRKLAND, MYERS, PALLONE, PARKER, SOLOBAY,
           WALKO, WHEATLEY AND SIPTROTH, MARCH 6, 2007

        REFERRED TO COMMITTEE ON INSURANCE, MARCH 6, 2007

                                     AN ACT

     1  Amending the act of May 17, 1921 (P.L.789, No.285), entitled, as
     2     amended, "An act relating to insurance; establishing an
     3     insurance department; and amending, revising, and
     4     consolidating the law relating to the licensing,
     5     qualification, regulation, examination, suspension, and
     6     dissolution of insurance companies, Lloyds associations,
     7     reciprocal and inter-insurance exchanges, and certain
     8     societies and orders, the examination and regulation of fire
     9     insurance rating bureaus, and the licensing and regulation of
    10     insurance agents and brokers; the service of legal process
    11     upon foreign insurance companies, associations or exchanges;
    12     providing penalties, and repealing existing laws," providing
    13     for use of credit history of insureds; and further providing
    14     for penalties imposed by Insurance Department.

    15     The General Assembly of the Commonwealth of Pennsylvania
    16  hereby enacts as follows:
    17     Section 1.  The act of May 17, 1921 (P.L.789, No.285), known
    18  as The Insurance Department Act of 1921, is amended by adding a
    19  section to read:
    20  Section 652-A.  Use of credit history of insured.
    21     (a)  General rule.--An insurer shall not deny, cancel or
    22  refuse to renew or raise the premium of personal insurance due
    23  in whole or in part to an insured's credit history.


     1     (b)  Enforcement.--Upon satisfactory evidence of a violation
     2  of this section by any insurer or insurance producer or on
     3  satisfactory evidence of such conduct that would disqualify the
     4  insurance producer from initial issuance of a certificate of
     5  qualification under former section 604 or 622 or under this
     6  article, the department may pursue any one or more of the
     7  following courses of action regardless of whether the insurance
     8  producer was previously so authorized by the department:
     9         (1)  Suspend or revoke or refuse to renew the certificate
    10     of qualification or license of the offending party or
    11     parties.
    12         (2)  Impose a civil penalty of not more than $5,000 for
    13     each action in violation of any of the provisions of this
    14     section.
    15         (3)  Issue an order to cease and desist.
    16         (4)  Impose such other conditions as the department may
    17     deem appropriate.
    18     (c)  Rules and regulations.--The department may adopt such
    19  rules and regulations as are necessary to administer this
    20  section.
    21     (d)  Definitions.--As used in this section, the following
    22  words and phrases shall have the meanings given to them in this
    23  subsection:
    24     "Credit history."  A written, oral or other communication of
    25  information by a consumer reporting agency bearing on a
    26  consumer's credit worthiness, credit standing or credit
    27  capacity, which is used, expected to be used or collected in
    28  whole or in part for the purpose of serving as a factor in
    29  establishing personal insurance premiums or eligibility for
    30  coverage.
    20070H0602B0668                  - 2 -     

     1     "Personal insurance."  Property and casualty insurance to be
     2  used primarily for personal, family or household purposes, such
     3  as homeowner and private passenger automobile insurance.
     4     Section 2.  This act shall take effect in 60 days.


















    A17L40BIL/20070H0602B0668        - 3 -
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