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07/19/2024 02:00 PM
Pennsylvania House of Representatives
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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2023 - 2024 Regular Session


Posted: April 10, 2024 11:52 AM
From: Representative Kristine C. Howard
To: All House members
Subject: Eliminating Use of Credit Scores in Insurance
Present law allows insurers to factor credit rating into their decisions regarding a person’s a policy, including revocation and premium cost. Insurance is not a loan or any variety of credit, so this process is wholly illogical –credit scores measure the likelihood that a person will pay consistently on their debts, and offer assurance to creditors that loans will be honored. In an insurance relationship, however, there’s no risk to the insurer of default; if a person ceases paying their premiums, they simply are not covered.

This practice creates a barrier to many Pennsylvanians in gaining access to insurance, with rates greater than they can afford, impacting their ability to lawfully drive or to have their homes insured against the risk of fire, to give but two examples. To address this unfairness, I will soon introduce legislation banning providers of personal insurance from factoring credit score into their decisions.

Please join me in co-sponsoring this important legislation.

Introduced as HB2211