HB 277 -- INSURANCE COVERAGE (Carter)

This bill prohibits insurance companies from refusing to issue,
canceling, or modifying private passenger automobile insurance
policies on the sole basis of information received in consumer
credit reports.

Beginning July 1, 2000, insurers must provide information
regarding the availability of insurance for loss caused by
storm-sewer backup or sanitary sewer backup to original
applicants or policyholders renewing a policy from July 1, 2000,
to June 30, 2001.

FISCAL NOTE:  Estimated Net Income to Insurance Dedicated Fund
of $0 to $23,650 in FY 2000, $0 in FY 2001, and $0 in FY 2002.

HB 277 -- INSURANCE COVERAGE

SPONSOR:  Carter

COMMITTEE ACTION:  Voted "do pass" by the Committee on Consumer
Protection and Housing by a vote of 13 to 4.

This bill prohibits insurance companies from refusing to issue,
canceling, or modifying homeowner or automobile insurance
policies on the sole basis of information received in consumer
credit reports.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the use of credit reports as
the sole reason to deny insurance coverage is problematic
because some people have no credit history and others may have
had problems in the past.

Testifying for the bill were Representative Carter; and Missouri
Association of Insurance Agents.

OPPONENTS:  Those who oppose the bill say that the credit report
is a valid tool for assessing risk.  They also cite federal law,
which expressly authorizes the use of credit reports for this
purpose.

Testifying against the bill were Fair Isaac; Missouri Insurance
Coalition; American Insurance Association; National Association
of Independent Insurers; Allstate Insurance Company; and
Progressive Insurance Company.

Donna Schlosser, Legislative Analyst

HB 277 -- Insurance Coverage

Sponsor:  Carter

This bill prohibits insurance companies from refusing to issue,
canceling, or modifying homeowner or automobile insurance
policies on the sole basis of information received in consumer
credit reports.