The online versions of legislation provided on this website are not official. Enrolled bills are the final version passed by the Ohio General Assembly and presented to the Governor for signature. The official version of acts signed by the Governor are available from the Secretary of State's Office in the Continental Plaza, 180 East Broad St., Columbus.
H. B. No. 519As IntroducedAs Introduced
|124th General Assembly|
REPRESENTATIVES Jolivette, Seitz, Reidelbach, Patton, Young, Coates, Allen
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
To enact section 3937.022 of the Revised Code to
regulate the use of credit scoring in determining
rates for motor vehicle insurance and to require
the Department of Insurance to study the impact of
insurers' use of credit scoring on motor vehicle
Section 1. That section 3937.022 of the Revised Code be
enacted to read as follows:
Sec. 3937.022. (A) As used in this section, "credit score"
means a numerical value or a categorization determined from a
statistical tool or modeling system to predict the likelihood of
certain credit behaviors, including default. "Credit score" does
not include any mortgage score or rating of an automated
underwriting system that considers one or more factors in addition
to credit information.
(B) In determining rates for motor vehicle insurance, an
insurer may consider credit reports and credit scores in
accordance with this section.
(C)(1) No insurer shall refuse to write or renew motor
vehicle insurance solely on the basis of an applicant's or
insured's credit score or credit report.
(2) No insurer shall consider a credit score or credit
report in underwriting motor vehicle insurance unless the credit
score was determined or the credit report issued within the prior
(3) An insurer that considers credit scores or credit
reports in determining rates for motor vehicle insurance shall
annually obtain new credit scores and credit reports for each of
its insureds. The insurer shall use the updated credit scores and
credit reports in determining its insureds' premiums. If spouses
are covered under the same policy of motor vehicle insurance, an
insurer shall obtain credit scores or credit reports on both
spouses, and the better credit score or credit report shall be
used in determining the premium for the policy.
(D)(1) If an
insurer considers credit reports and credit
scores in determining
rates for motor vehicle insurance, the
insurer shall notify an
applicant of its use of credit reports and
credit scores, in
writing, prior to the issuance of a motor
(2) If an insurer that does not consider credit reports
credit scores in determining rates for motor vehicle insurance
begins to consider these risks in determining rates, the insurer
shall promptly notify its insureds, in writing, of this change to
its rating system. Premium increases resulting from this change
shall be averaged into the premiums of current insureds over a
(E) If an insurer groups risks by classifications for the
establishment of rates and considers credit scores and credit
reports as, or within, any such classification, the insurer shall
consider an applicant or insured that is without a credit score or
credit report due to a lack of established credit, for
underwriting purposes, at the midpoint for this risk factor.
(F) If an insurer refuses to write or renew motor vehicle
insurance, an applicant or insured may request information under
section 3937.08 of the Revised Code with respect to how a rating
organization's or insurer's rating system was applied to the
applicant or insured. If credit reports and credit scores were
considered in the underwriting decision, the insurer shall provide
the applicant or insured with copies of all credit reports and
credit scores considered.
(G) No insurer shall increase an applicant's or insured's
premium as a result of a request for information on the insurer's
use of credit scores and credit reports.
Section 2. The Department of Insurance shall study and issue
a report on the impact of insurers' use of credit scoring in
determining rates for motor vehicle insurance. The study shall
include an assessment of whether the use of credit scoring
increases the cost of motor vehicle insurance. If the study finds
that the use of credit scoring does increase average motor vehicle
insurance premiums, the study shall determine the impact of this
increase on the number of uninsured motorists in Ohio. The study
shall examine the impact that an increase in Ohio's minimum
financial responsibility requirements for the operation of a motor
vehicle, in combination with insurers' use of credit scoring,
would have on the number of uninsured motorists in Ohio.
The Department shall issue its report, which shall include
its findings and any legislative or administrative
recommendations, within one year after the effective date of this
act. Copies of the report shall be submitted, at the time of its
issuance, to the Governor, the Speaker of the House of
Representatives, the President of the Senate, the chair of the
House of Representatives committee having primary jurisdiction
over insurance legislation, and the chair of the Senate committee
having primary jurisdiction over insurance legislation.