Oklahoma § 36-953

§ 36-953.

Use of credit information - Prohibited acts.

Oklahoma Statutes - Title 36. Insurance

An insurer authorized to do business in this state that uses

credit information to underwrite or rate risks, shall not:

1. Use an insurance score that is calculated using income,

gender, address, zip code, ethnic group, religion, marital status,

or nationality of the consumer as a factor;

2. Deny, cancel or fail to renew a policy of personal insurance

solely on the basis of credit information, without consideration of

any other applicable underwriting factor independent of credit

information and not expressly prohibited by paragraph 1 of this

section;

3. Base renewal rates for personal insurance of an insured

solely upon credit information, without consideration of any other

applicable factor independent of credit information;

4. Take adverse action against a consumer solely because the

consumer does not have a credit card account, without consideration

of any other applicable factor independent of credit information;

5. Consider an absence of credit information or an inability to

calculate an insurance score in underwriting or rating personal

insurance, unless the insurer does one of the following:

a.

treats the consumer as otherwise approved by the

Insurance Commissioner, if the insurer presents

information that an absence or inability relates to

the risk for the insurer,

b.

treats the consumer as if the applicant or insured had

neutral credit information, as defined by the insurer,

or

c.

excludes the use of credit information as a factor and

use only other underwriting criteria;

6. Take an adverse action against a consumer based on credit

information, unless an insurer obtains and uses a credit report

issued or an insurance score calculated within ninety (90) days from

the date the policy is first written or renewal is issued;

7. Use credit information unless not later than every thirtysix (36) months following the last time that the insurer obtained

current credit information for the insured, the insurer recalculates

the insurance score or obtains an updated credit report. Regardless

of the requirements of this subsection:

a.

at annual renewal, upon the request of a consumer or

the agent of the consumer, the insurer shall

reunderwrite and rerate the policy based upon a

current credit report or insurance score. An insurer

need not recalculate the insurance score or obtain the

updated credit report of a consumer more frequently

than once in a twelve-month period,

b.

the insurer shall have the discretion to obtain

current credit information upon any renewal before the

Oklahoma Statutes - Title 36. Insurance

thirty-six (36) months, if consistent with its

underwriting guidelines, and

c.

no insurer need obtain current credit information for

an insured, despite the requirements of paragraph 7 of

this section, if one of the following applies:

(1) the insurer is treating the consumer as otherwise

approved by the Commissioner,

(2) the insured is in the most favorably priced tier

of the insurer, within a group of affiliated

insurers. However, the insurer shall have the

discretion to order a report, if consistent with

its underwriting guidelines,

(3) credit was not used for underwriting or rating

the insured when the policy was initially

written. However, the insurer shall have the

discretion to use credit for underwriting or

rating the insured upon renewal, if consistent

with its underwriting guidelines, or

(4) the insurer reevaluates the insured beginning no

later than thirty-six (36) months after inception

and thereafter based upon other underwriting or

rating factors, excluding credit information; and

8. Use the following as a negative factor in any insurance

scoring methodology or in reviewing credit information for the

purpose of underwriting or rating a policy of personal insurance:

a.

credit inquiries not initiated by the consumer or

inquiries requested by the consumer for the credit

information of the consumer,

b.

inquiries relating to insurance coverage, if so

identified on a credit report of the consumer,

c.

collection accounts with a medical industry code, if

so identified on the credit report of the consumer,

d.

multiple lender inquiries, if coded by the consumer

reporting agency on the credit report of the consumer

as being from the home mortgage industry and made

within thirty (30) days of one another, unless only

one inquiry is considered, and

e.

multiple lender inquiries, if coded by the consumer

reporting agency on the credit report of the consumer

as being from the automobile lending industry and made

within thirty (30) days of one another, unless only

one inquiry is considered.

Added by Laws 2003, c. 127, § 4, eff. Nov. 1, 2003. Amended by Laws

2010, c. 222, § 8, eff. Nov. 1, 2010.