An Act amending Title 40 (Insurance) of the Pennsylvania Consolidated Statutes, providing for prohibited activities related to use of credit history of insured.

PRINTER'S NO. 666
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 657
Session of
2025
INTRODUCED BY HOWARD, ISAACSON, PIELLI, GIRAL, McNEILL, HILL-
EVANS, RABB, SANCHEZ, OTTEN AND CERRATO, FEBRUARY 20, 2025
REFERRED TO COMMITTEE ON INSURANCE, FEBRUARY 20, 2025
AN ACT
Amending Title 40 (Insurance) of the Pennsylvania Consolidated
Statutes, providing for prohibited activities related to use
of credit history of insured.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 40 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 52
PROHIBITED ACTIVITIES
Sec.
5201. (Reserved).
5202. Use of credit history of insured.
§ 5201. (Reserved).
§ 5202. Use of credit history of insured.
(a) Premiums.--An insurer or insurance producer may not
deny, provide higher premium than otherwise, cancel or refuse to
renew or raise the premium of personal insurance or life
insurance due in whole or in part to an insured's or prospective
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insured's credit history.
(b) Enforcement.--Upon satisfactory evidence of a violation
of this section by an insurer or insurance producer or on
satisfactory evidence of conduct that would disqualify an
insurance producer from initial issuance of a certificate of
qualification under former section 604 or 622 of the act of May
17, 1921 (P.L.789, No.285), known as The Insurance Department
Act of 1921, or under Article VI-A of The Insurance Department
Act of 1921, the department may pursue any one or more of the
following courses of action, regardless of whether the insurer
or insurance producer was previously authorized to utilize
credit history by the department:
(1) Suspend , revoke or refuse to renew the certificate
of qualification or license of the offending party or
parties.
(2) Impose a civil penalty of not more than $5,000 for
each action in violation of any of the provisions of this
section.
(3) Issue an order to cease and desist.
(4) Impose other conditions as the department may deem
appropriate.
(c) Rules and regulations.--The department may promulgate
rules and regulations necessary to administer this section.
(d) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
" Credit history. " A written, oral or other communication of
information by a consumer reporting agency bearing on a
consumer's creditworthiness, credit standing or credit capacity,
which is used, expected to be used or collected in whole or in
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part for the purpose of serving as a factor in establishing
insurance premiums or eligibility for coverage.
"Life insurance." A policy offered in accordance with
Article IV of the act of May 17, 1921 (P.L.682, No.284), known
as The Insurance Company Law of 1921.
" Personal insurance. " Property and casualty insurance to be
used primarily for personal, family or household purposes,
including homeowner and private passenger automobile insurance.
Section 2. This act shall take effect in 60 days.
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