FILED ON: 11/7/2011

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3795

The Commonwealth of Massachusetts

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In the Year Two Thousand Eleven

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An Act banning the use of credit in underwriting and rating private passenger motor vehicle insurance..

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Chapter 175 of the General Laws is hereby amended by inserting after Section 4D, as appearing in the 2010 Official Edition, the following section:-

Section 4E. No insurer engaged in writing private passenger motor vehicle insurance in the commonwealth shall, in connection with underwriting of said insurance, refuse to issue or renew a private passenger motor vehicle insurance policy or bond based on the ownership or operation of a private passenger motor vehicle based upon credit information, including but not limited to a numerical credit-based insurance score or credit rating of an insured; and provided, further, no insurer shall file rates for private passenger motor vehicle insurance, pursuant to chapter 175E, based on credit information, including but not limited to a numerical credit-based insurance score or credit rating of an applicant or insured.  Nothing in this section shall be construed to restrict any insurer from obtaining or using its own payment history information or information contained in an insurance claims history report, a motor vehicle or driver history report, or any other report from the Massachusetts Registry of Motor Vehicles or its out-of-state equivalent.

SECTION 2. Section 113B of said chapter 175, as so appearing in the 2010 Official Edition, is hereby amended by adding the following paragraph:- The commissioner shall not fix or establish any private passenger motor vehicle insurance rates, premium charges, premium adjustments, or classifications of risks based in whole or in part on credit information relating to an insured, including but not limited to a numerical credit-based insurance score or credit rating of an insured; and provided, further, that no insurer, in connection with underwriting private passenger motor vehicle insurance or bonds based on the ownership or operation of a private passenger motor vehicle, shall refuse to issue or renew said insurance or bond based upon credit information, including but not limited to a numerical credit-based insurance score, other credit rating of an insured or applicant.  Nothing in this paragraph shall be construed to restrict any insurer from obtaining or using its own payment history information or information contained in an insurance claims history report, a motor vehicle or driver history report, or any other report from the Massachusetts Registry of Motor Vehicles or its out-of-state equivalent.

SECTION 3. Section 4 of chapter 175E of the General Laws, as so appearing in the 2010 Official Edition, inserting after the word "discriminatory", in line 5, the following sentence:- In connection with private passenger motor vehicle insurance, rates shall not be based in whole or in part on any credit information relating to an insured, including but not limited to, a numerical credit-based insurance score or other credit rating of an insured; and provided, further, that no insurer, in connection with underwriting private passenger motor vehicle insurance or bonds based on the ownership or operation of a private passenger motor vehicle, shall refuse to issue or renew said insurance or bond based upon credit information, including but not limited to a numerical credit-based insurance score or other credit rating of an insured or applicant. Nothing in this section shall be construed to restrict any insurer from obtaining or using its own payment history information or information contained in an insurance claims history report, a motor vehicle or driver history report, or any other report from the Massachusetts Registry of Motor Vehicles or its out-of-state equivalent.