Assembly Bill No. 194–Committee on Commerce and Labor

 

February 25, 2003

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Referred to Committee on Commerce and Labor

 

SUMMARY—Prohibits insurer from using information included in consumer report of applicant or policyholder for certain policies of insurance. (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 requesting or requiring certain applicants or policyholders to provide a copy of their consumer reports; prohibiting an insurer from using information included in the consumer report of an applicant or policyholder as a basis for determining whether to issue, renew, cancel or increase the premium of certain 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:

1-5  (a) Request or require an applicant or policyholder to provide

1-6  a copy of his consumer report to the insurer; or

1-7  (b) Use any information included in the consumer report of an

1-8  applicant or policyholder as a basis for determining whether to

1-9  issue, cancel, renew or increase the premium for the renewal of a

1-10  policy.

1-11      2.  The provisions of this section do not apply to a contract of

1-12  surety insurance issued pursuant to chapter 691B of NRS or any

1-13  commercial or business policy.

2-1  3.  As used in this section, “consumer report” means any

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

2-3  (a) Concerns the credit worthiness, credit standing, credit

2-4  capacity, character, general reputation, personal characteristics or

2-5  mode of living of a person; and

2-6  (b) Is intended to be used by an insurer, in whole or in part, as

2-7  a basis for any decision in connection with a transaction relating

2-8  to insurance.

 

2-9  H