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

14The General Assembly of the Commonwealth of Pennsylvania
15hereby enacts as follows:

16Section 1. The act of May 17, 1921 (P.L.789, No.285), known
17as The Insurance Department Act of 1921, is amended by adding a
18section to read:

19Section 652-A. Use of credit history of insured.

20(a) General rule.--An insurer shall not deny, cancel or
21refuse to renew or raise the premium of personal insurance due
22in whole or in part to an insured's credit history.

23(b) Enforcement.--Upon satisfactory evidence of a violation

1of this section by an insurer or insurance producer or on
2satisfactory evidence of conduct that would disqualify the
3insurance producer from initial issuance of a certificate of
4qualification under former section 604 or 622 or under this
5article, the department may pursue any one or more of the
6following courses of action regardless of whether the insurance
7producer was previously so authorized by the department:

8(1) Suspend, revoke or refuse to renew the certificate
9of qualification or license of the offending party or
10parties.

11(2) Impose a civil penalty of not more than $5,000 for
12each action in violation of any of the provisions of this
13section.

14(3) Issue an order to cease and desist.

15(4) Impose such other conditions as the department may
16deem appropriate.

17(c) Rules and regulations.--The department may adopt such
18rules and regulations as are necessary to administer this
19section.

20(d) Definitions.--As used in this section, the following
21words and phrases shall have the meanings given to them in this
22subsection:

23"Credit history." A written, oral or other communication of 
24information by a consumer reporting agency bearing on a 
25consumer's credit worthiness, credit standing or credit 
26capacity, which is used, expected to be used or collected in 
27whole or in part for the purpose of serving as a factor in 
28establishing personal insurance premiums or eligibility for 
29coverage.

30"Personal insurance." Property and casualty insurance to be
 

1used primarily for personal, family or household purposes, such 
2as homeowner and private passenger automobile insurance.

3Section 2. This act shall take effect in 60 days.