H. B. 2240
(By Delegates Eldridge, Marshall, Caputo and Perdue)
[Introduced January 13, 2010; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §33-11-5b, relating
to prohibiting the use of a person's credit history in
insurance transactions.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §33-11-5b, to read as
follows:
ARTICLE 11. UNFAIR TRADE PRACTICES.
§33-11-5b. Use of credit history prohibited.
With respect to insurance policies for passenger motor
vehicles, residential property or other personal insurance lines,
no person may:
(1) Refuse to underwrite, cancel, refuse to renew a risk or
increase a renewal premium, based, in whole or in part, on the credit history of an applicant for insurance or an insured person;
(2) Rate a risk based, in whole or in part, on the credit
history of an applicant for insurance or an insured person in any
manner, including, but not limited to, removing of a discount,
assigning an applicant or insured person to a rating tier, or
placing an applicant or insured person with an affiliated company;
or
(3) Require a particular payment plan based, in whole or in
part, on the credit history of the applicant for insurance or the
insured person.
NOTE: The purpose of this bill is to prohibit the use of a
person's credit history in insurance transactions.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.