Insurance & credit study

AN ACT Relating to conducting a study of credit history, credit-1
based insurance scores, and other rate factors that may disparately 2
impact Washington residents, in making rates for personal insurance; 3
creating a new section; and providing an expiration date.4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. (1) The legislature finds that insurers' 6
use of credit history, credit-based insurance scoring models, and 7
other rate factors that may disparately impact Washington residents, 8
to make personal insurance rates, may be impacting Washington 9
residents in unintended or unacceptable ways. The legislature further 10
finds that establishing public policy for ensuring personal insurance 11
availability and pricing that is consistent with legislative 12
expectations requires actuarial evaluation of insurers' current use 13
of credit history, credit-based insurance scores, other rate factors 14
that may have disparate impacts on Washington residents, and 15
alternatives to their use, for purposes of rates, premiums, or 16
eligibility for coverage.17
(2) The office of the insurance commissioner shall conduct a 18
study of insurers' use of credit history, credit-based insurance 19
scores, other rate factors that may have disparate impacts on 20
Washington residents, and alternatives to their use, in determining 21
Z-0340.1
HOUSE BILL 1748
State of Washington 69th Legislature 2025 Regular Session
By Representatives Salahuddin, Macri, Taylor, Thomas, Hill, Farivar,
Berg, Simmons, Zahn, Street, Kloba, Obras, Reed, Gregerson, Ormsby,
Berry, Parshley, Thai, Nance, Scott, and Pollet; by request of
Insurance Commissioner
Read first time 01/30/25. Referred to Committee on Consumer
Protection & Business.
p. 1 HB 1748
personal insurance premiums, rates, or eligibility for coverage, and 1
the associated impacts to consumer costs and the availability of 2
insurance. 3
(3) In conducting the study, the insurance commissioner shall:4
(a) Collect information from entities transacting personal 5
insurance as defined in RCW 48.19.035. The identified authorized 6
insurers are required to provide the requested information to the 7
insurance commissioner; 8
(b) Investigate and obtain any other relevant information that 9
may assist the insurance commissioner with analyzing insurers' use of 10
credit history, credit-based insurance scoring models, other rate 11
factors that may disparately impact Washington residents, and 12
alternatives to their use, in determining personal insurance 13
premiums, rates, eligibility for coverage, and evaluating the 14
associated impacts to consumer costs and the availability of 15
insurance; and 16
(c) Contract with actuaries and other consultants, as needed, to:17
(i) Analyze insurers' use of credit history, credit-based 18
insurance scoring models, or other rate factors that may disparately 19
impact Washington residents, in determining premiums, rates, and 20
eligibility for coverage for people of various races, ethnicities, 21
sexes, socioeconomic status, and national origins;22
(ii) Identify and analyze alternative rate factors that could be 23
used to determine premiums, rates, and eligibility for coverage that 24
neither rely on credit history or credit-based insurance scoring 25
models, nor disparately impact Washington residents of various races, 26
ethnicities, sexes, socioeconomic status, or national origins;27
(iii) Analyze the likely impact of insurers' uses under (c)(i) of 28
this subsection, and alternative rate factors identified under 29
(c)(ii) of this subsection, on consumer costs, rates, premiums 30
eligibility for coverage, and availability of insurance for people of 31
various races, ethnicities, sexes, socioeconomic status, and national 32
origins; and 33
(iv) Develop for legislative consideration, policy options and 34
their likely impacts on consumer costs, premiums, rates, eligibility 35
for coverage, and the availability of personal insurance, of use of 36
rate plans that include and exclude credit history, credit-based 37
insurance scoring models, or other rate factors that may have a 38
disparate impact on Washington residents. 39
p. 2 HB 1748
(4) Consistent with RCW 43.01.036, the insurance commissioner 1
shall submit a preliminary report to the relevant policy committees 2
of the legislature by December 31, 2025, and a final report by 3
September 15, 2026, with review findings, policy options, and 4
recommendations regarding allowance, prohibition, or contingent use, 5
of credit history, credit-based insurance scoring models, other 6
disparately impactful rating factors, and alternatives to their use, 7
for personal insurance, and the associated impacts on consumer costs, 8
premiums, rates, eligibility for coverage, and availability of 9
insurance for people of various races, ethnicities, sexes, 10
socioeconomic status, and national origins. 11
(5) Data requested by, or provided to, the insurance commissioner 12
and the insurance commissioner's contracted consultants for the 13
purpose of complying with the study and reporting requirements in 14
this section is confidential by law and privileged, and is not 15
subject to public disclosure under chapter 42.56 RCW. Nothing in this 16
section prohibits the insurance commissioner from preparing and 17
publishing reports, analyses, or other documents using the data 18
received under this section so long as the data is in aggregate form 19
and does not permit the identification of information related to 20
individual companies. Data in the aggregate form is deemed open 21
records available for public inspection. Nothing in this section 22
affects, limits, or amends the insurance commissioner's authority 23
under chapter 48.37 RCW. 24
(6) This section expires December 31, 2033. 25
--- END ---
p. 3 HB 1748