79R3076 KCR-D

By:  Bonnen                                                       H.B. No. 700



A BILL TO BE ENTITLED

AN ACT

relating to the contents of consumer credit reports and to an 
insurer's use of credit scores in rating policies providing 
personal insurance coverage.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 20, Business & Commerce Code, is amended 
by adding Section 20.14 to read as follows:
	Sec. 20.14.  INCLUDING CERTAIN INFORMATION IN REPORT 
PROHIBITED.  A consumer reporting agency may not include in any 
consumer report delivered in this state information concerning an 
inquiry made by an insurer into a consumer's credit worthiness, 
credit standing, or credit capacity.  For purposes of this section, 
"insurer" has the meaning assigned by Section 1, Article 21.49-2U, 
Insurance Code.
	SECTION 2.  Article 21.49-2U, Insurance Code, is amended by 
adding Section 17 to read as follows:
	Sec. 17.  REEXAMINATION OF CREDIT INFORMATION REQUIRED.  (a)  
If an insurer uses an insured's credit score or reviews an insured's 
credit information or credit report in rating or underwriting a 
personal insurance policy covering the insured, the insurer, each 
time the policy is renewed, shall reexamine the insured's credit 
score, credit information, or credit report.
	(b) If, between the date the insurer last rated or underwrote 
the insured's policy and the date the policy is renewed, the 
insured's credit score, credit information, or credit report 
changes in a manner that would result in the insured's paying a 
lower premium for the policy, the insurer, not later than the 30th 
day after the date the insurer reexamines the credit score, credit 
information, or credit report under Subsection (a), shall 
re-underwrite and re-rate the insured.
	SECTION 3.  The change in law made by Section 20.14, Business &
 Commerce Code, as added by this Act, applies only to a credit 
report that is delivered on or after the effective date of this Act.  
A credit report that is delivered before the effective date of this 
Act is covered by the law in effect at the time the credit report was 
delivered, and that law is continued in effect for that purpose.
	SECTION 4.  The change in law made by Section 17, Article 
21.49-2U, Insurance Code, as added by this Act, applies only to a 
personal insurance policy that is renewed or issued for renewal on 
or after January 1, 2006.  A personal insurance policy that is 
renewed or issued for renewal before January 1, 2006, is covered by 
the law in effect at the time the policy was renewed or issued for 
renewal, and that law is continued in effect for that purpose.
	SECTION 5.  This Act takes effect September 1, 2005.