HB 657 — An Act amending Title 40 (Insurance) of the Pennsylvania Consolidated Statutes, providing for prohibited activities related to use of credit history of insured.

PRINTER'S NO.   666

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 657
                                                  Session of
                                                    2025

     INTRODUCED BY HOWARD, ISAACSON, PIELLI, GIRAL, McNEILL, HILL-
        EVANS, RABB, SANCHEZ, OTTEN AND CERRATO, FEBRUARY 20, 2025

     REFERRED TO COMMITTEE ON INSURANCE, FEBRUARY 20, 2025


                                     AN ACT
 1   Amending Title 40 (Insurance) of the Pennsylvania Consolidated
 2      Statutes, providing for prohibited activities related to use
 3      of credit history of insured.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby enacts as follows:
 6      Section 1.    Title 40 of the Pennsylvania Consolidated
 7   Statutes is amended by adding a chapter to read:
 8                                 CHAPTER 52
 9                            PROHIBITED ACTIVITIES
10   Sec.
11   5201.    (Reserved).
12   5202.    Use of credit history of insured.
13   § 5201.    (Reserved).
14   § 5202.    Use of credit history of insured.
15      (a)    Premiums.--An insurer or insurance producer may not
16   deny, provide higher premium than otherwise, cancel or refuse to
17   renew or raise the premium of personal insurance or life
18   insurance due in whole or in part to an insured's or prospective
 1   insured's credit history.
 2      (b)   Enforcement.--Upon satisfactory evidence of a violation
 3   of this section by an insurer or insurance producer or on
 4   satisfactory evidence of conduct that would disqualify an
 5   insurance producer from initial issuance of a certificate of
 6   qualification under former section 604 or 622 of the act of May
 7   17, 1921 (P.L.789, No.285), known as The Insurance Department
 8   Act of 1921, or under Article VI-A of The Insurance Department
 9   Act of 1921, the department may pursue any one or more of the
10   following courses of action, regardless of whether the insurer
11   or insurance producer was previously authorized to utilize
12   credit history by the department:
13            (1)   Suspend, revoke or refuse to renew the certificate
14      of qualification or license of the offending party or
15      parties.
16            (2)   Impose a civil penalty of not more than $5,000 for
17      each action in violation of any of the provisions of this
18      section.
19            (3)   Issue an order to cease and desist.
20            (4)   Impose other conditions as the department may deem
21      appropriate.
22      (c)   Rules and regulations.--The department may promulgate
23   rules and regulations necessary to administer this section.
24      (d)   Definitions.--As used in this section, the following
25   words and phrases shall have the meanings given to them in this
26   subsection unless the context clearly indicates otherwise:
27      "Credit history."    A written, oral or other communication of
28   information by a consumer reporting agency bearing on a
29   consumer's creditworthiness, credit standing or credit capacity,
30   which is used, expected to be used or collected in whole or in

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1   part for the purpose of serving as a factor in establishing
2   insurance premiums or eligibility for coverage.
3      "Life insurance."   A policy offered in accordance with
4   Article IV of the act of May 17, 1921 (P.L.682, No.284), known
5   as The Insurance Company Law of 1921.
6      "Personal insurance."   Property and casualty insurance to be
7   used primarily for personal, family or household purposes,
8   including homeowner and private passenger automobile insurance.
9      Section 2.   This act shall take effect in 60 days.




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