Read the full stored bill text
House
File
2259
-
Introduced
HOUSE
FILE
2259
BY
CROKEN
,
MADISON
,
KURTH
,
WILSON
,
KRESSIG
,
WILBURN
,
AMOS
JR.
,
SCHOLTEN
,
WESSEL-KROESCHELL
,
EHLERT
,
R.
JOHNSON
,
JAMES
,
and
RAMIREZ
A
BILL
FOR
An
Act
relating
to
an
insurer’s
use
of
credit
information
for
a
1
motor
vehicle
financial
liability
coverage
policy.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
5267YH
(4)
91
th/ns
H.F.
2259
Section
1.
Section
515.103,
subsection
1,
paragraph
j,
Code
1
2026,
is
amended
to
read
as
follows:
2
j.
“Personal
insurance”
means
personal
insurance
and
not
3
commercial
insurance
and
is
limited
to
private
passenger
4
automobile,
homeowners,
farm
owners,
personal
farm
liability,
5
motorcycle,
mobile
home
owners,
noncommercial
dwelling
fire,
6
boat,
and
personal
watercraft
,
snowmobile,
and
recreational
7
vehicle
insurance
policies,
that
are
individually
underwritten
8
for
personal,
family,
farm,
or
household
use.
No
other
type
of
9
insurance
is
included
as
personal
insurance
for
the
purposes
of
10
this
section
.
11
Sec.
2.
Section
515.103,
Code
2026,
is
amended
by
adding
the
12
following
new
subsection:
13
NEW
SUBSECTION
.
1A.
Prohibited
use
of
credit
14
information.
An
insurer
authorized
to
do
business
in
this
state
15
shall
not
use
credit
information
to
underwrite
or
rate
risks
16
for
a
motor
vehicle
financial
liability
coverage
policy.
For
17
purposes
of
this
subsection,
“financial
liability
coverage”
18
means
as
defined
in
section
321.1,
subsection
24B,
paragraph
19
“a”
.
20
EXPLANATION
21
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
22
the
explanation’s
substance
by
the
members
of
the
general
assembly.
23
Under
current
law,
an
insurer
authorized
to
operate
in
24
Iowa
is
authorized
to
use
credit
information
to
underwrite
or
25
rate
risks
for
a
policy
of
personal
insurance,
including
for
26
private
passenger
automobiles,
snowmobiles,
and
recreational
27
vehicles.
However,
an
insurer
cannot
use
credit
information
to
28
deny,
cancel,
or
refuse
renewal
of
a
policy
solely
on
credit
29
information,
without
considering
other
relevant
underwriting
30
factors;
to
determine
renewal
rates
based
solely
on
credit
31
information,
ignoring
other
applicable
factors;
to
take
adverse
32
action
because
a
consumer
lacks
a
credit
card
account,
without
33
considering
other
factors;
to
consider
absence
of
credit
34
information
in
underwriting
as
a
negative
factor;
to
take
35
-1-
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2259
adverse
action
based
on
credit
information
unless
the
insurer
1
has
an
updated
credit
report
or
insurance
score
from
the
prior
2
90
days;
or
use
credit
information
36
months
or
later
after
3
obtaining
the
credit
information,
with
certain
exceptions
4
provided.
5
This
bill
prohibits
an
insurer
authorized
to
do
business
in
6
Iowa
from
using
credit
information
to
underwrite
or
rate
risks
7
for
a
motor
vehicle
financial
liability
coverage
policy.
For
8
purposes
of
the
bill,
“financial
liability
coverage”
means
an
9
owner’s
policy
of
liability
insurance
which
is
issued
by
an
10
insurance
carrier
authorized
to
do
business
in
Iowa
to
or
for
11
the
benefit
of
the
person
named
in
the
policy
as
insured,
and
12
insuring
the
person
named
as
insured
and
any
person
using
an
13
insured
motor
vehicle
with
the
express
or
implied
permission
of
14
the
named
insured
against
loss
from
liability
imposed
by
law
15
for
damages
arising
out
of
the
ownership,
maintenance,
or
use
16
of
an
insured
motor
vehicle
within
the
United
States
or
Canada,
17
but
subject
to
minimum
limits,
exclusive
of
interest
and
costs.
18
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