Texas Insurance Code Title 5, Chapter 559 - Credit Scoring And Credit Information

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 559.001 - Definitions
  In this chapter: (1) "Adverse effect" means an action taken by an insurer in connection with the underwriting of insurance for a consumer that results...
• Texas Section 559.002 - Applicability Of Chapter
  This chapter applies to an insurer that writes personal insurance coverage and uses credit information or credit reports for the underwriting or rating of that...
• Texas Section 559.003 - Information Provided To Public
  The department shall: (1) update insurer profiles maintained on the department's Internet website to provide information to consumers stating whether or not an insurer uses...

SUBCHAPTER B USE OF CREDIT SCORING AND CREDIT INFORMATION

• Texas Section 559.004 - Rules
  (a) The commissioner may adopt rules necessary to implement this chapter. (b) The commissioner shall adopt rules that prescribe the allowable differences in rates charged...
• Texas Section 559.051 - Permissible Use Of Credit Scoring
  An insurer may use credit scoring, except for factors that constitute unfair discrimination, to develop rates, rating classifications, or underwriting criteria regarding lines of insurance...
• Texas Section 559.052 - Prohibited Use Of Credit Information
  (a) An insurer may not: (1) use a credit score that is computed using factors that constitute unfair discrimination; (2) deny, cancel, or nonrenew a...
• Texas Section 559.053 - Disclosure To Consumer Regarding Use Of Credit Scoring
  (a) An insurer that uses credit scoring in the underwriting or rating of insurance subject to this chapter shall disclose to each applicant for insurance...
• Texas Section 559.054 - Notice Of Action Resulting In Adverse Effect
  (a) If, based in whole or in part on information contained in a credit report, an insurer takes an action resulting in an adverse effect...
• Texas Section 559.055 - Dispute Resolution; Error Correction
  (a) If it is determined through the dispute resolution process established under Section 611(a)(5), Fair Credit Reporting Act (15 U.S.C. Section 1681i), as amended, that...
• Texas Section 559.056 - Indemnification Of Agent
  (a) An insurer shall indemnify, defend, and hold its agent harmless from and against all liability, fees, and costs that arise out of or relate...

SUBCHAPTER C COMPUTING CREDIT SCORE; EVALUATING CREDIT INFORMATION

• Texas Section 559.057 - Sale Of Policy Term Information By Consumer Reporting Agency Prohibited
  (a) A consumer reporting agency may not provide or sell data or lists that include any information that, in whole or in part, was submitted...
• Texas Section 559.101 - Negative Factors
  An insurer may not use any of the following as a negative factor in any credit scoring methodology or in reviewing credit information to underwrite...
• Texas Section 559.102 - Multiple Lender Inquiries
  (a) An insurer shall consider multiple lender inquiries made within 30 days of a prior inquiry, if coded by the consumer reporting agency on the...

SUBCHAPTER D FILING OF CREDIT SCORING MODELS

• Texas Section 559.103 - Extraordinary Events
  (a) Notwithstanding any other law, an insurer shall, on written request from an applicant for insurance coverage or an insured, provide reasonable exceptions to the...
• Texas Section 559.151 - Filing Required
  (a) An insurer that uses credit scores to underwrite and rate risks shall file the insurer's credit scoring models or other credit scoring processes with...

SUBCHAPTER E ENFORCEMENT

• Texas Section 559.152 - Public Information
  A credit scoring model filed to comply with this chapter, as of the date the filing is received by the department: (1) is public information;...
• Texas Section 559.201 - Violation
  An insurer that violates this chapter or a rule adopted under this chapter commits an unfair practice in violation of Chapter 541 and is subject...

Last modified: September 28, 2016