Exceptions by insurers to certain events influencing credit information – Request by insured or applicant.

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A. Notwithstanding any other law or regulation, an insurer that uses credit information shall, upon written request from an applicant for insurance coverage or an insured upon a form provided by the Insurance Commissioner, provide reasonable exceptions to the rate of the insurer, rating classifications, company or tier placement or underwriting rules or guidelines for a consumer who has experienced and whose credit information has been directly influenced by any of the following events:

1. Catastrophic event declared by the federal or state government;

2. Serious illness or injury, or serious illness or injury to an immediate family member;

3. Death of an immediate family member;

4. Divorce or involuntary interruption of legally owed alimony or support payments;

5. Identity theft;

6. Temporary loss of employment for a period of three (3) months or more, if it results from involuntary termination;

7. Military deployment overseas; and

8. Other events, as determined by the Insurance Commissioner.

B. If an applicant or insured submits a request for an exception as provided in subsection A of this section, an insurer may, in its sole discretion:

1. Require the consumer to provide reasonable written and independently verifiable documentation of the event;

2. Require the consumer to demonstrate that the event had direct and meaningful impact on the credit information of the consumer;

3. Require the request be made no more than sixty (60) days from the date of the application for insurance or the policy renewal;

4. Grant an exception despite the consumer not providing the initial request for an exception in writing; or

5. Grant an exception to requiring a written request where the consumer asks for a consideration of repeated events or the insurer has considered this event previously.

C. An insurer is in compliance with any other provision of law or Insurance Department rule relating to underwriting, rating or rate filing notwithstanding the granting an exception under this section. Nothing in this section shall be construed to provide a consumer or other insured with a cause of action that does not exist in the absence of this section.

D. The insurer shall provide notice to consumers, either at the time of acceptance of an insurance application or at policy renewal, that reasonable exceptions are available and information about how the consumer may inquire further.

Added by Laws 2021, c. 478, § 3, emerg. eff. May 12, 2021.


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