Assembly Bill No. 194–Committee on
Commerce and Labor

 

February 25, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Prohibits insurer from using information included in consumer credit report of applicant or policyholder for certain purposes. (BDR 57‑1114)

 

FISCAL NOTE:    Effect on Local Government: Yes.

                             Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to insurance; prohibiting an insurer from using information included in the consumer credit report of an applicant or policyholder as a basis for making certain determinations regarding policies of insurance; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. Chapter 686A of NRS is hereby amended by

1-2  adding thereto a new section to read as follows:

1-3  1.  Except as otherwise provided in subsection 2, an insurer

1-4  shall not use any information included in the consumer credit

1-5  report of an applicant or policyholder as a basis for determining:

1-6  (a) Whether to issue, cancel or renew a policy;

1-7  (b) The amount of the premium for a policy; or

1-8  (c) Eligibility for any plan for making payments with regard to

1-9  a policy.

1-10      2.  The provisions of this section do not apply to a contract of

1-11  surety insurance issued pursuant to chapter 691B of NRS or any

1-12  commercial or business policy.

1-13      3.  The provisions of this section must be liberally construed

1-14  to protect applicants and policyholders by preventing the use of

2-1  consumer credit reports in making determinations as set forth in

2-2  subsection 1.

2-3  4.  As used in this section, “consumer credit report” means

2-4  any written, oral or electronic communication of information that:

2-5  (a) Concerns the credit worthiness, credit standing, credit

2-6  capacity or a credit transaction of a person; and

2-7  (b) Is intended to be used by an insurer, in whole or in part, as

2-8  a basis for a determination set forth in subsection 1.

 

2-9  H