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State of South Dakota
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SEVENTY-SEVENTH
SESSION
LEGISLATIVE ASSEMBLY, 2002 |
| 562H0288 |
HOUSE BILL
NO.
1117
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Introduced by:
Representatives Madsen, Broderick, Brown (Jarvis), Flowers, Pederson
(Gordon), Peterson (Bill), Solum, and Sutton (Duane) and Senators Munson,
Brown (Arnold), Diedtrich (Elmer), McCracken, Reedy, Sutton (Dan), and
Vitter
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FOR AN ACT ENTITLED, An Act to
provide rule-making authority regarding the use of credit
histories by insurers when underwriting or rating certain insurance applications or renewing
insurance policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That chapter 58-2 be amended by adding thereto a NEW SECTION to read as follows:
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That chapter 58-2 be amended by adding thereto a NEW SECTION to read as follows:
The director may promulgate rules, pursuant to chapter 1-26, to specify the prohibited uses
of a credit history by any insurer to underwrite or rate personal lines automobile or homeowner's
insurance applications or renewals which, in the opinion of the director, are unjust, unfair, or
unfairly discriminatory to any person insured or making application for coverage. The director
may also promulgate rules, pursuant to chapter 1-26, assuring notice by the insurer to an insured
or applicant of the use of any credit report or credit history in the underwriting and rating of
personal lines automobile or homeowner's applications or renewals.
The director may not promulgate any rule that would constitute an absolute bar to the use
of credit scoring by an insurer when underwriting or rating personal lines automobile or homeowner's insurance applications or renewals.
