Senator NIA H. GILL
District 34 (Essex and Passaic)
Prohibits use of insurance scoring by property-casualty insurers in rate-making for personal lines insurance coverage.
CURRENT VERSION OF TEXT
An Act concerning the use of insurance scoring by certain insurers and supplementing P.L.1944, c.27 (C.17:29A-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Notwithstanding any other law to the contrary, an insurer shall not use insurance scoring in rate-making, as defined in section 1 of P.L.1944, c.27 (C.17:29A-1), for any personal lines insurance coverage delivered, issued, executed or renewed in this State, or approved for issuance or renewal in this State by the commissioner, on or after the first day of the third month next following the effective date of this section and until June 30, 2013. As used in this section, “insurance scoring” 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 purpose of establishing the measure of exposure for insurance loss represented by an applicant or insured.
2. This act shall take effect immediately, but the Commissioner of Banking and Insurance may take any anticipatory administrative action in advance thereof as shall be necessary for the implementation of this act.
This bill temporarily prohibits the use of insurance scoring by property-casualty insurers in rate-making for personal lines insurance coverage. Thus, an insurer, for the designated period, shall not use a credit score or other credit information in determining a person’s eligibility for insurance coverage or the premium paid by the person in consideration for coverage received.
The provisions of the bill shall apply to contracts or policies delivered, issued, executed, or renewed, or approved for issuance or renewal by the Commissioner of Banking and Insurance, on or after the first day of the third month next following the bill’s effective date and until June 30, 2013.