Senate Bill No. 61, introduced by Senator Luneau, amends existing Louisiana law regarding the use of credit information in underwriting and rating personal insurance policies. The bill requires insurers to disclose to consumers that credit information may be obtained in connection with their insurance applications. Additionally, it mandates that insurers provide consumers with their credit-based insurance score and detailed information about how that score affects their premium rates, coverage options, and eligibility. This includes a breakdown of the scoring scale, explanations of the factors influencing the score, and recommendations for improving the score over time.

The bill also stipulates that if an insurer takes an adverse action based on credit information, they must notify the consumer in accordance with the federal Fair Credit Reporting Act and provide clear reasons for the action, including up to four primary influencing factors. Furthermore, insurers using scoring systems must file their models with the Department of Insurance, which will review them for compliance. The bill retains the classification of filings related to credit information as trade secrets under the Uniform Trade Secrets Act. The proposed changes will take effect on August 1, 2025.

Statutes affected:
SB61 Original: