Session Law

2011

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Chapter 195 AN ACT PROHIBITING 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 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 other credit rating of an applicant or insured; and provided, that no insurer shall file rates for private passenger motor vehicle insurance, under chapter 175E, based upon credit information, including, but not limited to, a numerical credit-based insurance score or other 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 registry of motor vehicles or its out-of-state equivalent.

SECTION 2. Section 113B of said chapter 175, as amended by section 105 of chapter 68 of the acts of 2011, is hereby further 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 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, 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 applicant or insured. 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 registry of motor vehicles or its out-of-state equivalent.

SECTION 3. The first paragraph of subsection (a) of section 4 of chapter 175E of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by adding the following 2 sentences:- 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, 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 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 registry of motor vehicles or its out-of-state equivalent.

Approved, November 22, 2011.