The bill amends existing Washington state insurance laws to introduce reasonable exceptions to insurance rates for consumers whose credit information has been adversely affected by extraordinary life circumstances. It defines various events that may influence a consumer's credit information, such as catastrophic events, serious illness, death of a family member, divorce, identity theft, involuntary job loss, and military deployment. Insurers are required to provide reasonable exceptions to their rates, classifications, or underwriting rules upon written request from affected consumers. The bill also stipulates that insurers must inform consumers about the availability of these exceptions and the process for requesting them.

Additionally, the bill clarifies that insurers cannot cancel or nonrenew personal insurance based solely on a consumer's credit history or insurance score. It emphasizes that credit history can only be used in conjunction with other underwriting factors and prohibits the use of certain types of credit history to determine insurance premiums. The bill also mandates that if disputed credit history leads to higher premiums, insurers must rerate the policy retroactively to the effective date of the current policy term, provided the consumer resolves the dispute according to the Fair Credit Reporting Act. Overall, the legislation aims to protect consumers from adverse insurance actions linked to their credit history, particularly in light of significant life events.

Statutes affected:
Original Bill: 48.18.545, 48.19.035