No. 42875 (5-year Review): Rule R590-219. Credit Scoring

DAR File No.: 42875
Filed: 05/04/2018 05:57:35 PM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Subsection 31A-2-201(3)(a) authorizes the Insurance Commissioner to make rules to implement the provisions of the Insurance Code, Title 31A. Subsection 31A-22-320(3) authorizes the Insurance Commissioner to write rules to regulate the use of credit information. This rule sets the minimum standards for property and casualty insurers doing private passenger automobile business in Utah that use credit history or an insurance score as part of their underwriting criteria or rating plans.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

The Department of Insurance (Department) has received no written comments regarding this rule in the past five years.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

This rule is necessary for regulating the way in which automobile insurance companies use an insured's credit score. One of the main reasons for this rule and the law is to disallow insurers from using a credit score as the sole reason to cancel an insured's policy. The law and this rule requires the presence of risk-related factors before increasing an insured's premium or canceling their policy. Since the creation of the law and this rule, the Department has received fewer and fewer complaints related to misuse of credit scores. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Insurance
Administration
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Steve Gooch at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [e-mail]

Effective:

05/04/2018

Authorized by:

Steve Gooch, Information Specialist

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