Bill > SB61

This bill amends Louisiana law to enhance consumer protections and transparency regarding how insurance companies use credit information when underwriting or rating personal insurance policies. The bill requires insurers to disclose upfront that they may obtain and review a consumer's credit information, and provide a specific example of an acceptable disclosure statement. When an insurer takes an adverse action (like denying coverage or charging higher rates) based on credit information, they must now provide a clear, specific explanation of the reasons, avoiding generalized terms like "poor credit history." The bill also mandates that insurers file their credit-based insurance scoring models with the Louisiana Department of Insurance, and the insurance commissioner will review these models to ensure compliance with regulations. Additionally, insurers must now inform consumers how they can obtain a copy of the credit information used in their underwriting process. The bill aims to increase transparency and fairness in how credit information is used in insurance decision-making, with an effective date of July 1, 2026.

Business and Industry

https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=SB61&sbi=y