Amend CSSB 14 in ARTICLE 2 of the bill by inserting the 
following appropriately numbered SECTION and renumbering SECTIONS 
accordingly:
	SECTION 2.__. Subchapter E, Chapter 21, Insurance Code, is 
amended by adding Article 21.49-2W to read as follows:
	Art. 21.49-2W. DISCOUNT OR UNDERWRITING REVIEW FOR PERSONAL 
LINES AUTHORIZED
	Sec. 1.  DEFINITIONS.  In this article:                                 
		(1)  "Consumer reporting agency" means any person that, 
for monetary fees or dues or on a cooperative nonprofit basis, 
regularly engages in the practice of assembling or evaluating 
consumer credit information or other information for the purpose of 
furnishing consumer reports to third parties.
		(2)  "Credit information" means any credit-related 
information derived from a credit report, found on a credit report 
itself, or provided in an application for personal insurance.  The 
term does not include information that is not credit-related, 
regardless of whether that information is contained in a credit 
report or in an application for insurance coverage or is used to 
compute a credit score.
		(3)  "Credit report" means any written, oral, or other 
communication of information by a consumer reporting agency that:
			(A)  bears on a individual's creditworthiness, 
credit standing, or credit capacity; and
			(B)  is used or expected to be used or collected in 
whole or in part to serve as a factor to determine personal 
insurance premiums, eligibility for coverage, or tier placement.
		(4)  "Credit score" means a number or rating derived 
from an algorithm, computer application, model, or other process 
that is based on credit information and used to predict the future 
insurance loss exposure of an individual.
		(5)  "Insurer" means an insurer authorized to write 
property and casualty insurance in this state, including an 
insurance company, reciprocal or interinsurance exchange, mutual 
insurance company, capital stock company, county mutual insurance 
company, association, Lloyd's plan, or other entity writing 
personal insurance in this state.  The term includes an affiliate, 
as described by this code, if that affiliate is authorized to write 
personal insurance in this state.
		(6)  "Personal insurance" means:                                       
			(A)  a personal automobile insurance policy; or                       
			(B)  a residential property insurance policy, 
including a residential fire and allied lines insurance policy.
	Sec. 2.  DISCOUNT AUTHORIZED; RESTRICTIONS. (a) 
Notwithstanding Article 21.49-2U of this code, an insurer may offer 
a discount to an insured or an applicant for personal insurance 
coverage based on the insured's or applicant's credit score.
	(b)  An insurer may offer a discount under this article only 
on request initiated by the insured or applicant. If the insured or 
applicant does not request that a credit score be used to determine 
a discount under this article, the insurer may not offer or provide 
the discount.
	Sec. 3.  AMOUNT OF DISCOUNT. A discount offered under this 
article may vary among insureds, but must be based on sound 
actuarial principals. An insurer that offers a discount under this 
article must file with the department the guidelines the insurer 
uses to determine the amount of the discount and the manner in which 
the discount is applied.
	Sec. 4.  UNDERWRITING REVIEW AUTHORIZED. Notwithstanding 
Article 21.49-2U of this code, an insurer may offer to an applicant 
whose application for personal insurance has been rejected or an 
insured whose personal insurance has been non-renewed an 
underwriting review based on a positive credit score.
	Sec. 5.  APPLICATION FOR DISCOUNT OR UNDERWRITING REVIEW; 
FEE; CORRECTION OF ERRORS. (a) An insurer may charge an insured or 
applicant a fee, not to exceed $15, to obtain the insured or 
applicant's credit score to determine whether the insured or 
applicant is eligible for a discount or underwriting review offered 
under this article.
	(b)  An insurer shall notify the insured or applicant of the 
result of applying the insured's or applicant's credit score to 
determine a discount or obtain an underwriting review.  The insured 
or applicant may elect that the credit score be used to obtain the 
discount or underwriting review or may direct that the insurer may 
not use the credit score for any purpose.
	(c)  If the discount is reduced or eliminated or if an 
underwriting review is rejected because of a negative credit score, 
the insurer shall disclose to the insured or applicant each 
negative factor that influenced that action.
	(c)  If it is determined that the credit information of an  
insured or applicant used in accordance with this article was 
inaccurate or incomplete or could not be verified and the insurer 
receives notice of that determination from the consumer reporting 
agency or from the insured or applicant, the insurer shall 
re-compute the discount or reconsider the underwriting review.
	Sec. 6.  APPLICATION OF CREDIT SCORE ON RENEWAL. (a) On 
renewal of personal insurance coverage after application of a 
credit score to obtain a discount under this article, an insurer 
may:
		(1)  renew the insurance at the discounted rate; or                    
		(2)  compute a new credit score for the insured.                       
	(b)  An insurer may discontinue a discount based on a 
negative credit score obtained under Subsection (a)(2) of this 
section, but may not, based on the new credit score:
		(1)  impose a surcharge on the insurance premium; or                   
		(2)  cancel or non-renew the insurance coverage.                       
	(c)  An insurer may not charge a fee to an insured to obtain 
the insured's credit score under Subsection (a)(2) of this section.
	Sec. 7.  MINIMUM STANDARDS FOR CREDIT SCORING MODEL; UNFAIR 
DISCRIMINATION PROHIBITED. (a) The commissioner by rule shall 
establish minimum standards for a credit scoring model or other 
credit scoring process used by an insurer under this article. The 
minimum standards must establish standards for fairness and 
protection of consumers that are at least as stringent as the Model 
Act Regarding Use of Credit Information in Personal Insurance 
adopted by the National Conference of Insurance Legislators.
	(b)  A credit scoring model or other credit scoring process 
used by an insurer under this article may not violate Article 
21.21-6, Insurance Code, as added by Chapter 415, Acts of the 74th 
Legislature, Regular Session, 1995.
	Sec. 8.  REQUIRED FILING.  (a)  An insurer that uses credit 
scores under this article shall file the insurer's credit scoring 
models or other credit scoring processes with the department.  
Another entity may file credit scoring models on behalf of an 
insurer.
	(b)  The commissioner may reject a filing made under this 
section or may order that the insurer modify the filing if the 
commissioner finds that a discount offered under this article or 
the credit scoring model or other credit scoring process:
		(1)  is not based on sound actuarial principals;                       
		(2)  violates the minimum standards established under 
Section 7 of this article; or
		(3)  violates Article 21.21-6, Insurance Code, as added 
by Chapter 415, Acts of the 74th Legislature, Regular Session, 
1995, or is otherwise unfairly discriminatory.
	(c)  A filing under this section is public information, is 
not confidential, and is subject to disclosure under Chapter 552, 
Government Code.
	Sec. 9.  PROHIBITIONS. An insurer may not:                              
		(1)  require an insured or applicant for personal 
insurance coverage to request the application of a credit score or 
credit information as a condition of obtaining coverage; or
		(2)  reject or non-renew an insured or applicant for 
personal insurance coverage or apply a surcharge to the premium for 
a personal insurance coverage policy because:
			(A)  the insured or applicant refused to allow the 
use of a credit score; or
			(B)  the insured or applicant has a negative 
credit score.          
	Sec. 10.  INFORMATION TO APPLICANTS AND INSURED. This 
article does not prohibit an insured or an agent from informing an 
insured or applicant for personal insurance coverage of the 
availability of a discount or underwriting review under this 
article.
	Sec. 11.  RULES.  The commissioner may adopt rules as 
necessary to implement this article.