HB 2741 — Relating to prohibiting the use of credit scoring in certain lines of personal insurance.

Summary

Relating to prohibiting the use of credit scoring in certain lines of personal insurance.

Bill Text

Compared against the Texas statutes as published AI-generated reading aid — verify against the official bill.

This bill amends 3 section(s) of the Texas statutes: Section 559.002, Insurance Code, Section 559.052, Insurance Code, Section 559.055, Insurance Code.

• general or a personal lines property and casualty agent is used or whose credit score is computed in the underwriting or rating of a personal insurance policy : (A) ; and (B) is used or expected to be used or collected in whole or in part to serve as a factor to determine personal insurance premiums, eligibility for coverage, or tier placement → Subchapter B, C, or E, has been reported to or is in the possession of a consumer reporting agency or an insurer

  amended

• Section 559.002, Insurance Code

  an and uses credit information or credit reports for the underwriting or rating of that coverage → each

  amended

• Section 559.052, Insurance Code

  PROHIBITED a credit score computed using factors that constitute unfair discrimination deny, , solely basis of without considering any other applicable underwriting factor independent of credit information or without considering any other applicable factor independent of credit information unless the insurer: (1) has statistical, actuarial, or reasonable underwriting information that: (A) is reasonably related to actual or anticipated loss experience; and (B) shows that the absence of credit information could result in actual or anticipated loss differences; (2) treats the consumer as if the applicant for insurance coverage or insured had neutral credit information, as defined by the insurer; or (3) excludes the use of credit information as a factor in underwriting and uses only other underwriting criteria → PROHIBITED an underwriting guideline based wholly or partly on the credit information, credit report, or credit score of an applicant for insurance coverage or any person other than the applicant who would be insured under a policy of personal insurance refuse to underwrite or based wholly or partly , credit report, or credit score of an applicant for insurance coverage or any person other than the applicant who would be insured under the policy ; (4) charge an applicant for insurance coverage a higher premium than otherwise would be charged based wholly or partly on the credit information, credit report, or credit score of the applicant or any person other than the applicant who would be insured under a policy of personal insurance; (5) rate a risk based wholly or partly on the credit information, credit report, or credit score of an applicant for insurance coverage or any person other than the applicant who would be insured under a policy of personal insurance, including: (A) providing or removing a discount; (B) assigning the applicant for insurance coverage to a rating tier; or (C) placing an applicant for insurance coverage with an affiliated company (6) require a particular payment plan based wholly or partly on the credit information, credit report, or credit score of the applicant for insurance coverage or any person other than the applicant who would be insured under a policy of personal insurance.

  amended

• Section 559.055, Insurance Code

  (c) This section expires September 1, 2026.

  amended

Action History

1. April 09, 2025

   Left pending in committee

2. April 09, 2025

   Testimony taken/registration(s) recorded in committee

3. April 09, 2025

   Considered in public hearing

4. April 09, 2025

   Scheduled for public hearing on . . .

5. March 18, 2025

   Referred to Insurance

6. March 18, 2025

   Read first time

7. February 12, 2025

   Filed

Sponsors

• Trey Martinez Fischer · Primary

Subjects