Amend the bill as a whole by deleting section 1 and adding:
“Section 1. (Deleted by amendment.)”.
Amend sec. 1.5, page 2, line 15, by deleting “11,” and inserting “15,”.
Amend sec. 2, page 2, line 17, by deleting “11,” and inserting “15,”.
Amend sec. 5, page 2, line 33, after “policy;” by inserting “or”.
Amend sec. 5, page 2, line 34, by deleting “policy; or” and inserting “policy.”.
Amend sec. 5, page 2, by deleting lines 35 and 36.
Amend sec. 9, page 3, line 10, by deleting “11,” and inserting “15,”.
Amend sec. 10, page 3, by deleting lines 32 and 33 and inserting:
“unless the insurer does any one of the following:
(a) Treats the applicant or policyholder as otherwise approved by the Commissioner, after the insurer presents to the Commissioner information indicating that such an absence or inability relates to the risk for the insurer.
(b) Treats the applicant or policyholder as if the applicant or policyholder had neutral credit information, as defined by the insurer.
(c) Excludes the use of credit information as a factor, and uses only underwriting criteria other than credit information.”.
Amend sec. 10, page 3, line 36, after “a” by inserting “consumer”.
Amend sec. 10, page 3, line 42, after “months.” by inserting:
“At the time of the annual renewal of a policyholder’s policy, the insurer shall, upon the request of the policyholder or the policyholder’s agent, reunderwrite and rerate the policy based upon a current consumer credit report or insurance score. An insurer need not, at the request of a policyholder or the policyholder’s agent, recalculate the insurance score of or obtain an updated consumer credit report of the policyholder more frequently than once in any 12-month period. An insurer may, at its discretion, obtain an updated consumer credit report regarding a policyholder more frequently than once every 36 months, if to do so is consistent with the underwriting guidelines of the insurer.”.
Amend sec. 10, page 3, line 44, by deleting “if:” and inserting:
“if any one of the following applies:”.
Amend sec. 10, page 4, line 4, after “insurer.” by inserting:
“With respect to such a policyholder, the insurer may elect to obtain an updated consumer credit report if to do so is consistent with the underwriting guidelines of the insurer.”.
Amend sec. 10, page 4, line 6, after “written.” by inserting:
“The fact that credit information was not used initially does not preclude an insurer from using such information subsequently when underwriting or rating such a policyholder upon renewal, if to do so is consistent with the underwriting guidelines of the insurer.”.
Amend sec. 10, page 4, by deleting lines 28 through 30.
Amend the bill as a whole by deleting sec. 11, renumbering sections 12 through 20 as sections 16 through 24 and adding new sections designated sections 11 through 15, following sec. 10, to read as follows:
“Sec. 11. If it is determined pursuant to the dispute resolution process set forth in section 611(a) of the federal Fair Credit Reporting Act, 15 U.S.C. § 1681i(a), that the credit information of a policyholder was incorrect or incomplete and if the insurer receives notice of such determination from either the consumer reporting agency or from the policyholder, the insurer shall reunderwrite and rerate the policyholder within 30 days of receiving the notice. After reunderwriting or rerating the insured, the insurer shall make any adjustments necessary, consistent with its underwriting and rating guidelines. If an insurer determines that the policyholder has overpaid a premium, the insurer shall refund to the policyholder the amount of overpayment calculated back to the shorter of either the last 12 months of coverage or the actual period of the policy.
Sec. 12. 1. If an insurer uses credit information in underwriting or rating an applicant, the insurer or its agent shall disclose, either on the application for the policy or at the time the application is taken, that the insurer may obtain credit information in connection with the application. The disclosure must be written or provided to an applicant in the same medium as the application. The insurer need not provide the disclosure required pursuant to this section to a policyholder upon renewal of a policy if the policyholder was previously provided the disclosure in connection with the policy.
2. An insurer may comply with the requirements of this section by providing the following statement:
In connection with this application for insurance, we may review your credit report or obtain or use a credit-based insurance score based on the information contained in that credit report. We may use a third party in connection with the development of your insurance score.
Sec. 13. If an insurer takes an adverse action based upon credit information, the insurer shall:
1. Provide notice to the applicant or policyholder that an adverse action has been taken, in accordance with the requirements of section 615(a) of the federal Fair Credit Reporting Act, 15 U.S.C. § 1681m(a).
2. Provide notice to the applicant or policyholder explaining the reasons for the adverse action. The reasons must be provided in sufficiently clear and specific language so that a person can identify the basis for the insurer’s decision to take the adverse action. The notice must include a description of not more than four factors that were the primary influences of the adverse action. The use of generalized terms such as “poor credit history,” “poor credit rating” or “poor insurance score” does not meet the requirements of this subsection. Standardized explanations provided by consumer reporting agencies are deemed to comply with this section.
Sec. 14. 1. An insurer shall indemnify, defend and hold harmless an agent of the insurer from and against all liability, fees and costs arising out of or relating to the actions, errors or omissions of the agent with regard to obtaining or using credit information or insurance scores for the insurer, if the agent follows the instructions of or procedures established by the insurer and complies with any applicable law or regulation.
2. This section does not provide, expand, limit or prohibit any cause of action an applicant or policyholder may have against an agent of an insurer.
Sec. 15. 1. A consumer reporting agency shall not provide or sell data or lists that include any information that in whole or in part was submitted in conjunction with:
(a) An inquiry by or for an insurer about the credit information of an applicant or policyholder; or
(b) A request for a credit report or insurance score.
2. The information described in subsection 1 includes, without limitation:
(a) The expiration date of a policy or any other information that may identify time periods during which a policy of an applicant or policyholder may expire; and
(b) The terms and conditions of the coverage provided by a policy of an applicant or policyholder.
3. The restriction set forth in subsection 1 does not apply to data or lists the consumer reporting agency supplies to the insurer, or an agent or affiliate of the insurer, from whom the information was received.
4. The provisions of this section do not restrict any insurer from being able to obtain a report regarding a motor vehicle or a report of a history of claims.”.
Amend sec. 18, page 9, line 25, by deleting:
“as determined by” and inserting:
“at the discretion of”.
Amend sec. 19, page 11, line 33, by deleting:
“as determined by” and inserting:
“at the discretion of”.
Amend the bill as a whole by adding new sections designated sections 25 and 26, following sec. 20, to read as follows:
“Sec. 25. 1. On or before December 31, 2004, the Commissioner of Insurance shall prepare a report and submit the report to the Governor and the Legislature. The report must address:
(a) The operation of sections 2 to 15, inclusive, of this act;
(b) The efficacy, necessity and desirability of using credit information in making decisions related to insurance;
(c) The impacts upon the residents of Nevada of the continued use of credit information in making decisions related to insurance; and
(d) Any additional consumer protections identified by the Commissioner for the consideration of the Legislature.
2. As used in this section, “credit information” has the meaning ascribed to it in section 7 of this act.
Sec. 26. 1. This section and sections 1 and 16 to 25, inclusive, of this act become effective on October 1, 2003.
2. Sections 1.5 to 15, inclusive, of this act become effective on July 1, 2004.”.
Amend the title of the bill to read as follows:
“AN ACT relating to insurance; restricting the use by an insurer of information included in the consumer credit report of an applicant or policyholder as a basis for making certain determinations and taking certain actions regarding policies of insurance, and providing for related procedures, duties, restrictions and exceptions; revising the membership of certain boards; providing that any refund of an assessment by the Division of Industrial Relations of the Department of Business and Industry must include payment for interest earned; providing that hearing officers and appeals officers shall designate the location of certain hearings; requiring the Commissioner of Insurance to conduct a study relating to the Investments of Insurers Model Act adopted by the National Association of Insurance Commissioners; requiring the Commissioner to prepare and submit to the Governor and the Legislature a report concerning certain matters relating to the use of credit information in making decisions related to insurance; and providing other matters properly relating thereto.”.