Proposed by initiative petition to be voted on at the General Election, November 7, 2006.
PROHIBITS INSURANCE COMPANIES FROM USING CREDIT SCORE OR "CREDIT WORTHINESS" IN CALCULATING RATES OR PREMIUMS
RESULT OF "YES" VOTE: "Yes" vote prohibits insurance companies and their agents from using the credit score or "credit worthiness" of insured or applicant in calculating rates or premiums.
RESULT OF "NO" VOTE: "No" vote retains existing law, which restricts, but does not prohibit, the use of credit scores or "credit worthiness" in calculating insurance rates or premiums.
SUMMARY: Current state law requires certain disclosures before a consumer's credit history may be obtained by an insurance company or agent and provides certain restrictions on the use of a consumer's credit history in determining insurance rates. This measure prohibits insurance companies and agents that sell or market medical, health, accident, automobile, fire, or liability insurance, or any combination of policies providing such coverage to consumers from quoting, offering, or charging, directly or indirectly, rates or premiums based solely or in part upon the credit score or "credit worthiness" of an insured or an applicant for insurance. This measure does not apply to policies already in effect, but it shall apply to all policies commenced, changed, amended, or renewed after the measure's effective date. Other provisions.
ESTIMATE OF FINANCIAL IMPACT: There is no financial effect on state or local government expenditures or revenues.