Legislative Proposals
DPFR-3
STATE OF MAINE
IN THE YEAR OF OUR LORD
TWO THOUSAND AND SEVEN
________________
____ L.D. ____
AN ACT to Clarify the Use of Insurance Scores
Be it enacted by the People of the State of Maine as follows:
24-A M.R.S.A. § 2169-B, sub-5, is amended to
read:
5. Dispute resolution and error correction;
rescoring.
A. If it is determined
through the dispute resolution process set forth in Title 10, section
1317 or 15 United States Code, Section 1681i(a)(5) that the credit
information of a current insured was incorrect or incomplete and if
the insurer receives notice of such determination from either the
consumer reporting agency or from the insured, the insurer shall reunderwrite
and rerate the consumer within 30 days of receiving the notice. After
reunderwriting or rerating 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.
B. In addition to the requirements of paragraph
A, an insurer that uses insurance scores to underwrite or rate risks
shall, upon request of the insured, but no more often than once every
12 months, obtain an updated credit report and recalculate the insurance
score and shall reunderwrite and rerate the consumer within 30 days
of receiving the request. After reunderwriting or rerating the insured,
the insurer shall make any adjustments necessary, consistent with
its underwriting and rating guidelines, which shall become effective
upon renewal of the policy.
SUMMARY
This bill would amend 24- A M.R.S.A. § 2169-B(5) to require an
insurer that uses consumer reports in insurance underwriting to obtain
an updated credit report, recalculate the insured’s insurance
score, and reunderwrite and rerate the insured. An insurer must take
these steps within 30 days of receiving the insured’s request
but need not do so more often that once in any 12-month period. Changes
in premium will not become effective until the current policy’s
renewal.
