215 ILCS 157/1
Short title
Short title. This Act may be cited as the Use of Credit Information in Personal Insurance Act. (Source: P.A. 93-114, eff. 10-1-03.)
Illinois Compiled Statutes 215 ILCS 157 — Use of Credit Information in Personal Insurance Act.
Illinois · statute · 215 ILCS 157 · 14 active provisions
215 ILCS 157/5
Purpose
Purpose. The purpose of this Act is to regulate the use of credit information for personal insurance so that consumers are afforded certain protections with respect to the use of that information. (Source: P.A. 93-114, eff. 10-1-03.)
215 ILCS 157/10
Scope
Scope. This Act applies to personal insurance and not to commercial insurance. For purposes of this Act, "personal insurance" means private passenger automobile, homeowners, motorcycle, mobile-homeowners and non-commercial dwelling fire insurance policies, and boat, personal watercraft, snowmobile, and recreational veh…
215 ILCS 157/15
Definitions
Definitions. For the purposes of this Act, these defined words have the following meanings: "Adverse action" means a denial or cancellation of, an increase in any charge for, or a reduction or other adverse or unfavorable change in the terms of coverage or amount of, any insurance, existing or applied for, in connectio…
215 ILCS 157/20
Use of credit information
Use of credit information. (a) An insurer authorized to do business in this State that uses credit information to underwrite or rate risks shall not: (1) Use an insurance score that is calculated using income, gender, address, ethnic group, religion, marital status, or nationality of the consumer as a factor. (2) Deny,…
215 ILCS 157/22
Extraordinary life events
Extraordinary life events. (a) An insurer authorized to do business in this State that uses credit information to underwrite or rate risks shall review and consider an exception to the risk score based upon extraordinary life events after receiving a written and signed notification from the applicant or insured explain…
215 ILCS 157/25
Dispute resolution and error correction
Dispute resolution and error correction. If it is determined through the dispute resolution process set forth in the federal Fair Credit Reporting Act, 15 U.S.C. 1681i(a)(5), that the credit information of a current insured was incorrect or incomplete and if the insurer receives notice of that determination from either…
215 ILCS 157/30
Initial notification
Initial notification. (a) If an insurer writing personal insurance uses credit information in underwriting or rating a consumer, the insurer or its agent shall disclose, either on the insurance application or at the time the insurance application is taken, that it may obtain credit information in connection with the ap…
215 ILCS 157/35
Adverse action notification
Adverse action notification. If an insurer takes an adverse action based upon credit information, the insurer must meet all of the notice requirements of this Section. The insurer shall: (1) Provide notification to the consumer that an adverse action has been taken, in accordance with the requirements of the federal Fa…
215 ILCS 157/40
Filing
Filing. (a) Insurers that use insurance scores to underwrite and rate risks must file their scoring models (or other scoring processes) with the Department. A third party may file scoring models on behalf of insurers. A filing that includes insurance scoring may include loss experience justifying the use of credit info…
215 ILCS 157/45
Enforcement; rates not regulated
Enforcement; rates not regulated. (a) The Department shall enforce the provisions of this Act pursuant to the enforcement powers granted to it under the Illinois Insurance Code. The Department may promulgate rules necessary to enforce and administer this Act. (b) Nothing contained in this Act shall be construed to empo…
215 ILCS 157/50
Sale of policy term information by consumer reporting agency
Sale of policy term information by consumer reporting agency. (a) No consumer reporting agency shall provide or sell data or lists that include any information that in whole or in part was submitted in conjunction with an insurance inquiry about a consumer's credit information or a request for a credit report or insura…
215 ILCS 157/55
Severability
Severability. If any Section, paragraph, sentence, clause, phrase, or part of this Act is declared invalid due to an interpretation of or a future change in the federal Fair Credit Reporting Act, the remaining Sections, paragraphs, sentences, clauses, phrases, or parts thereof shall be in no manner affected thereby but…
215 ILCS 157/99
Effective date
Effective date. This Act takes effect on October 1, 2003. (Source: P.A. 93-114, eff. 10-1-03.)