Illinois Compiled Statutes
Chapter 215 - INSURANCE
215 ILCS 157/ - Use of Credit Information in Personal Insurance Act.

(215 ILCS 157/1)
Sec. 1.
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.)

(215 ILCS 157/5)
Sec. 5.
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)
Sec. 10. 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 vehicle policies. Such policies must be individually underwritten
for
personal, family, or household use. No other type of insurance shall be
included as
personal insurance for the purpose of this Act.

(Source: P.A. 102-558, eff. 8-20-21.)

(215 ILCS 157/15)
Sec. 15.
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 connection with the
underwriting of personal insurance.
"Affiliate" means any company that controls, is controlled by, or is under
common
control with another company.
"Applicant" means an individual who has applied to be covered by a personal
insurance policy with an insurer.
"Consumer" means an insured or an applicant for a personal insurance policy
whose
credit information is used or whose insurance score is calculated in the
underwriting or rating of a personal insurance policy.
"Consumer reporting agency" means any person that, for monetary fees or dues
or on a
cooperative nonprofit basis, regularly engages in whole or in part in the
practice
of assembling or evaluating consumer credit information or other information on
consumers for the purpose of furnishing consumer reports to third parties.
"Credit information" means any credit-related information derived from a
credit
report, found on a credit report itself, or provided on an application for
personal
insurance. Information that is not credit-related shall not be considered
"credit
information," regardless of whether it is contained in a credit report or in an
application or is used to calculate an insurance score.
"Credit report" means any written, oral, or other communication of
information by a
consumer reporting agency bearing on a consumer's credit worthiness, credit
standing, or credit capacity, that is used or expected to be used or collected
in
whole or in part for the purpose of serving as a factor to determine personal
insurance premiums, eligibility for coverage, or tier placement.
"Department" means the Department of Insurance.
"Insurance score" means a number or rating that is derived from an algorithm,
computer
application, model, or other process that is based in whole or in part on
credit
information for the purposes of predicting the future insurance loss exposure
of an
individual applicant or insured.

(Source: P.A. 93-114, eff. 10-1-03.)

(215 ILCS 157/20)
Sec. 20. 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:
(b) An insurer authorized to do business
in this State that uses credit information to underwrite or rate risks shall, at annual renewal upon the request of an insured or an insured's agent, re-underwrite and re-rate the insured's personal insurance policy based on a current credit report or insurance score unless one of the following applies:
(Source: P.A. 96-560, eff. 8-18-09.)

(215 ILCS 157/22)
Sec. 22. 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 explaining how the applicant or insured believes the extraordinary life event adversely impacts the applicant's or insured's insurance risk score.
(b) For the purposes of this Section, "extraordinary life event" means the following:
(Source: P.A. 94-245, eff. 7-1-06.)

(215 ILCS 157/25)
Sec. 25.
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 the
consumer reporting
agency or from the insured, the insurer shall re-underwrite and re-rate the
consumer
within 30 days after receiving the notice. After re-underwriting or re-rating
the
insured, the
insurer shall make any adjustments necessary, consistent with its underwriting
and rating
guidelines. If an insurer determines that the insured has overpaid premium, the
insurer
shall refund to the insured the amount of overpayment calculated back to the
shorter of
either the last 12 months of coverage or the actual policy period.

(Source: P.A. 93-114, eff. 10-1-03.)

(215 ILCS 157/30)
Sec. 30.
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 application. The disclosure shall be
either
written or provided to an applicant in the same medium as the application for
insurance.
The insurer need not provide the disclosure statement required under this
Section to any
insured on a renewal policy, if the consumer has previously been provided a
disclosure
statement.
(b) Use of the following example disclosure statement constitutes compliance
with this Section: "In connection with this application for insurance, we may
review
your credit report or obtain or use a credit-based insurance score based on the
information
contained in that credit report. We may use a third party in connection with
the
development of your insurance score.".

(Source: P.A. 93-114, eff. 10-1-03.)

(215 ILCS 157/35)
Sec. 35.
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:
(Source: P.A. 93-114, eff. 10-1-03.)

(215 ILCS 157/40)
Sec. 40.
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 information.
(b) Any filing relating to credit information is considered to be a trade
secret
under the
Illinois Trade Secrets Act.

(Source: P.A. 93-114, eff. 10-1-03.)

(215 ILCS 157/45)
Sec. 45.
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 empower the
Department
to regulate or set the rates of any insurer pursuant to this Act.

(Source: P.A. 93-114, eff. 10-1-03.)

(215 ILCS 157/50)
Sec. 50.
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 insurance score. Such information includes, but is not limited to,
the
expiration dates of an insurance policy or any other information that may
identify
time periods during which a consumer's insurance may expire and the terms and
conditions of the consumer's insurance coverage.
(b) The restrictions provided in subsection (a) of this Section do not apply
to data or
lists the consumer reporting agency supplies to the insurance agent or producer
from whom information was received, the insurer on whose behalf the agent or
producer acted, or the insurer's affiliates or holding companies.
(c) Nothing in this Section shall be construed to restrict any insurer from
being able
to obtain a claims history report or a motor vehicle report.

(Source: P.A. 93-114, eff. 10-1-03.)

(215 ILCS 157/55)
Sec. 55.
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 shall
remain in full
force and effect.

(Source: P.A. 93-114, eff. 10-1-03.)

(215 ILCS 157/95)
Sec. 95.

The Illinois Insurance Code is amended by repealing Section
155.38.

(Source: P.A. 93-114, eff. 10-1-03.)

(215 ILCS 157/99)
Sec. 99.
Effective date.
This Act takes effect on October 1, 2003.

(Source: P.A. 93-114, eff. 10-1-03.)