LRB-1206/1
PJK:jld:ph
2009 - 2010 LEGISLATURE
April 2, 2009 - Introduced by Representatives Berceau, Vruwink, Zepnick,
Schneider, Wood, Young, Black, Sinicki, Pocan, Nass, Mason, Mursau,
Grigsby, Gunderson, Toles, Ballweg, Hixson, A. Williams
and Hilgenberg,
cosponsored by Senators Lehman, Carpenter, Erpenbach and Plale. Referred
to Committee on Insurance.
AB185,1,4 1An Act to amend 625.12 (1) (e), 625.12 (2), 625.15 (1) and 628.34 (3) (a); and to
2create
632.06 and 632.367 of the statutes; relating to: prohibiting the use of
3information in credit reports for issuing or setting premiums for motor vehicle
4or property insurance.
Analysis by the Legislative Reference Bureau
Current law contains prohibitions against unfairly discriminating among
policyholders by charging different premiums or offering different terms of coverage
except on the basis of classifications related to the nature and degree of risk covered.
Current law also specifies the factors on which insurance rates may be based. These
prohibitions and specifications apply to all types of insurance. Current law
specifically prohibits an insurer from using odometer reading data collected in the
course of an emissions inspection as a factor in setting rates or premiums for motor
vehicle insurance.
This bill prohibits an insurer from considering information in an individual's
credit report for purposes of issuing or renewing motor vehicle or property insurance,
including renter's and homeowner's insurance, or setting premiums for motor
vehicle or property insurance. The bill also prohibits a rating plan for motor vehicle

or property insurance from using information in an individual's credit report as a
rating factor.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB185, s. 1 1Section 1. 625.12 (1) (e) of the statutes is amended to read:
AB185,2,32 625.12 (1) (e) Subject to s. ss. 632.06, 632.365, and 632.367, all other relevant
3factors, including the judgment of technical personnel.
AB185, s. 2 4Section 2. 625.12 (2) of the statutes is amended to read:
AB185,2,135 625.12 (2) Classification. Risks may be classified in any reasonable way for
6the establishment of rates and minimum premiums, except that no classifications
7may be based on race, color, creed, or national origin, and classifications in
8automobile insurance may not be based on physical condition or developmental
9disability as defined in s. 51.01 (5). Subject to s. ss. 632.06, 632.365, and 632.367,
10rates thus produced may be modified for individual risks in accordance with rating
11plans or schedules that establish reasonable standards for measuring probable
12variations in hazards, expenses, or both. Rates may also be modified for individual
13risks under s. 625.13 (2).
AB185, s. 3 14Section 3. 625.15 (1) of the statutes is amended to read:
AB185,3,215 625.15 (1) Rate making. An insurer may itself establish rates and
16supplementary rate information for one or more market segments based on the
17factors in s. 625.12 and, if the rates are for property insurance, subject to s. 632.06
18or
, if the rates are for motor vehicle liability insurance, subject to s. ss. 632.365 and
19632.367
, or the insurer may use rates and supplementary rate information prepared
20by a rate service organization, with average expense factors determined by the rate

1service organization or with such modification for its own expense and loss
2experience as the credibility of that experience allows.
AB185, s. 4 3Section 4. 628.34 (3) (a) of the statutes is amended to read:
AB185,3,114 628.34 (3) (a) No insurer may unfairly discriminate among policyholders by
5charging different premiums or by offering different terms of coverage except on the
6basis of classifications related to the nature and the degree of the risk covered or the
7expenses involved, subject to ss. 632.06, 632.365, 632.367, 632.746, and 632.748.
8Rates are not unfairly discriminatory if they are averaged broadly among persons
9insured under a group, blanket, or franchise policy, and terms are not unfairly
10discriminatory merely because they are more favorable than in a similar individual
11policy.
AB185, s. 5 12Section 5. 632.06 of the statutes is created to read:
AB185,3,14 13632.06 Use of information in credit report. (1) In this section, "property
14insurance" includes renter's insurance and homeowner's insurance.
AB185,3,16 15(2) A rating plan for property insurance may not use information in an
16individual's credit report as a rating factor.
AB185,3,19 17(3) For the purpose of determining whether to issue or renew coverage under
18a property insurance policy, or of setting premiums for coverage under such a policy,
19an insurer may not consider information in the credit report of any of the following:
AB185,3,2120 (a) An individual who is, or who if coverage is issued would be, a named insured
21under the policy.
AB185,3,2222 (b) The spouse or other family member of an individual under par. (a).
AB185, s. 6 23Section 6. 632.367 of the statutes is created to read:
AB185,4,3
1632.367 Use of information in credit report. (1) A rating plan for motor
2vehicle insurance may not use information in an individual's credit report as a rating
3factor.
AB185,4,7 4(2) For the purpose of determining whether to issue or renew coverage under
5a motor vehicle insurance policy, or of setting premiums for coverage under such a
6policy, an insurer may not consider information in the credit report of any of the
7following:
AB185,4,98 (a) An individual who is, or who if coverage is issued would be, a named insured
9under the policy.
AB185,4,1010 (b) The spouse or other family member of an individual under par. (a).
AB185, s. 7 11Section 7. Initial applicability.
AB185,4,1412 (1) This act first applies to motor vehicle insurance policies or property
13insurance policies that are renewed, or for which application is made, on the effective
14date of this subsection.
AB185,4,1515 (End)
Loading...
Loading...