Amend SB 14 on third reading by adding the following 
appropriately numbered SECTION to the bill and renumbering 
subsequent SECTIONS of the bill accordingly:
	SECTION ____.  (a)  Sections 1(2), (4), and (7), Article 
21.49-2U, Insurance Code, are amended to read as follows:
		(2)  "Agent" means a person licensed or required to be 
licensed as a general property and casualty insurance agent under 
Subchapters B, C, D, or E, Chapter 4051 [Article 21.14 of this 
code].
		(4)  "Consumer" means an individual whose credit 
information has been reported to or is in the possession of a 
consumer reporting agency or an insurer [is used or whose credit 
score is computed in the underwriting or rating of a personal 
insurance policy].  The term includes an applicant for insurance 
coverage.
		(7)  "Credit report" means any written, oral, or other 
communication of information by a consumer reporting agency that[:
			[(A)]  bears on a consumer'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].
	(b)  Section 2, Article 21.49-2U, Insurance Code, is amended 
to read as follows:
	Sec. 2.  APPLICATION.  This article applies to each [an] 
insurer that writes personal insurance coverage [and uses credit 
information or credit reports for the underwriting or rating of 
that coverage].
	(c)  Section 3, Article 21.49-2U, Insurance Code, is amended 
to read as follows:
	Sec. 3.  [PROHIBITED] USE OF CREDIT INFORMATION PROHIBITED.  
(a) An insurer may not:
		(1)  use an underwriting guideline [a credit score] 
that is based, in whole or in part, on the credit information, 
credit report, or credit score of an applicant for insurance 
coverage or any other person other than the applicant who would be 
insured under a policy of personal insurance [computed using 
factors that constitute unfair discrimination];
		(2)  refuse to underwrite [deny], cancel, or nonrenew a 
policy of personal insurance based, in whole or in part, [solely] on 
the [basis of] credit information, credit report, or credit score 
of an applicant for insurance coverage or any other person other 
than the applicant who would be insured under the policy [without 
consideration of any other applicable underwriting factor 
independent of credit information]; [or]
		(3)  take an action that results in an adverse effect 
against a consumer because the consumer does not have a credit card 
account;
		(4)  charge an applicant for insurance coverage a 
higher premium than otherwise would be charged based, in whole or in 
part, on the credit information, credit report, or credit score of 
the applicant or any other person other than the applicant who would 
be insured under a policy of personal insurance;
		(5)  rate a risk based, in whole or in part, on the 
credit information, credit report, or credit score of an applicant 
for insurance coverage or any other person other than the applicant 
who would be insured under a policy of personal insurance, 
including:
			(A)  providing or removing a discount;                                
			(B)  assigning the applicant for insurance 
coverage to a rating tier; or
			(C)  placing an applicant for insurance coverage 
with an affiliated company; or
		(6)  require a particular payment plan based, in whole 
or in part, on the credit information, credit report, or credit 
score of the applicant for insurance coverage or any other person 
other than the applicant who would be insured under a policy of 
personal insurance  [without consideration of any other applicable 
factor independent of credit information].
	(b)  An insurer may not consider an absence of credit 
information or an inability to determine credit information for an 
applicant for insurance coverage or insured as a factor in 
underwriting or rating an insurance policy [unless the insurer:
		[(1)  has statistical, actuarial, or reasonable 
underwriting information that:
			[(A)  is reasonably related to actual or 
anticipated loss experience; and
			[(B)  shows that the absence of credit information 
could result in actual or anticipated loss differences;
		[(2)  treats the consumer as if the applicant for 
insurance coverage or insured had neutral credit information, as 
defined by the insurer; or
		[(3)  excludes the use of credit information as a 
factor in underwriting and uses only other underwriting criteria].
	(d)  Section 16, Article 21.49-2U, Insurance Code, is 
amended to read as follows:
	Sec. 16.  DUTIES OF DEPARTMENT.  The department shall [:      
		[(1)  update insurer profiles maintained on the 
department's Internet website to provide information to consumers 
stating whether or not an insurer uses credit scoring; and
		[(2)]  post the report required under Section 15 of 
this article on the department's Internet website.
	(e)  Sections 4-11 and Section 13, Article 21.49-2U, 
Insurance Code, are repealed.
	(f)  This section applies only to a personal insurance 
policy:               
		(1)  that is delivered, issued for delivery, or renewed 
on or after January 1, 2006;
		(2)  the application for which is submitted on or after 
January 1, 2006; or 
		(3)  that is subject to determination of denial, 
cancellation, or nonrenewal on or after January 1, 2006.
	(g)  A personal insurance policy delivered, issued for 
delivery, or renewed before January 1, 2006, or the application for 
which is submitted before January 1, 2006, is governed by the law as 
it existed immediately before January 1, 2006, and that law is 
continued in effect for that purpose.