PRINTER'S NO. 561

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 518 Session of 2007


        INTRODUCED BY LAVALLE, LOGAN, PUNT, FONTANA, KITCHEN, STOUT,
           TARTAGLIONE, KASUNIC, MUSTO, FERLO, COSTA, EARLL, RHOADES,
           C. WILLIAMS, HUGHES, BROWNE AND WOZNIAK, MARCH 19, 2007

        REFERRED TO BANKING AND INSURANCE, MARCH 19, 2007

                                     AN ACT

     1  Amending Title 75 (Vehicles) of the Pennsylvania Consolidated
     2     Statutes, prohibiting the use of credit scoring.

     3     The General Assembly of the Commonwealth of Pennsylvania
     4  hereby enacts as follows:
     5     Section 1.  Title 75 of the Pennsylvania Consolidated
     6  Statutes is amended by adding a section to read:
     7  § 1706.  Use of credit scoring prohibited.
     8     (a)  Prohibition.--An insurer shall not cancel or refuse to
     9  issue or renew a policy of automobile insurance based on the
    10  credit rating of a policyholder or applicant which the insurer
    11  deems to be unsatisfactory. An insurer shall also be prohibited
    12  from imposing a surcharge or applying a rating factor on a
    13  policy based on the use of a credit rating as an underwriting
    14  standard.
    15     (b)  Penalty.--Upon conviction of a violation of subsection
    16  (a) by any agent of any insurance entity, insurance broker or
    17  surplus lines licensee or on satisfactory evidence of such


     1  conduct that would disqualify the agent or broker from initial
     2  issuance of a certificate of qualification, the Insurance
     3  Department may pursue any one or more of the following courses
     4  of action regardless of whether the agent or broker was so
     5  authorized by the Insurance Department:
     6         (1)  Suspend or revoke or refuse to renew the certificate
     7     of qualification or license of the offending party or
     8     parties.
     9         (2)  Impose a civil penalty of not more than $5,000 for
    10     each violation.
    11         (3)  Issue an order to cease and desist.
    12         (4)  Impose such other conditions as the Insurance
    13     Department may deem appropriate.
    14     (c)  Definitions.--As used in this section, the following
    15  words and phrases shall have the meanings given to them in this
    16  subsection:
    17     "Policy of automobile insurance" or "policy."  The term shall
    18  have the same meaning as given to it in section 2001 of the act
    19  of May 17, 1921 (P.L.682, No.284), known as The Insurance
    20  Company Law of 1921.
    21     "Renewal" or "to renew."  The term shall have the same
    22  meaning as given to it in section 2001 of the act of May 17,
    23  1921 (P.L.682, No.284), known as The Insurance Company Law of
    24  1921.
    25     Section 2.  This act shall take effect in 60 days.




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