§ 23-67-401. Title

This subchapter shall be known and may be cited as the “Use of Credit Information in Personal Insurance Act”.

§ 23-67-402. Purpose

The purpose of this subchapter is to regulate the use of credit information for personal insurance so that consumers are afforded certain protections with respect to the use of the information.

§ 23-67-403. Scope

This subchapter applies to personal insurance and not to commercial insurance or any other type of insurance.

§ 23-67-404. Definitions

For the purposes of this subchapter: (1) “Adverse action” means a denial or cancellation of, an increase in any charge for, or a reduction or other adverse or unfavorable change in the terms of coverage or amount of any insurance, existing or applied for, in connection with the underwriting of personal insurance; (2) “Affiliate” means […]

§ 23-67-405. Use of credit information

An insurer authorized to do business in Arkansas that uses credit information to underwrite or rate risks shall not: (1) Use a credit score that is calculated using income, gender, address, zip code, ethnic group, religion, marital status, or nationality of the consumer as a factor; (2) Deny, cancel, or nonrenew a policy of personal […]

§ 23-67-406. Dispute resolution and error correction

(a) If it is determined through the dispute resolution process set forth in section 1681i(a)(5) of the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., that the credit information of a current insured was incorrect or incomplete and if the insurer receives written notice of the determination from either the consumer reporting agency […]

§ 23-67-407. Initial notification

(a) (1) If an insurer writing personal insurance uses credit information in underwriting or rating a consumer, the insurer or its agent shall disclose either on the insurance application or at the time the insurance application is taken that it may obtain credit information in connection with the application. (2) The disclosure shall be either […]

§ 23-67-408. Adverse action notification

If an insurer takes an adverse action based upon credit information, the insurer shall: (1) Provide the consumer the name, address, and phone number of the person or division at the insurance company responsible for handling applicant or policyholder questions concerning credit-based underwriting decisions; (2) Provide notification to the consumer that an adverse action has […]

§ 23-67-409. Filing

(a) (1) Insurers that use credit scores to underwrite or rate risks shall file their scoring models or other scoring processes with the State Insurance Department. (2) A third party may file scoring models on behalf of insurers. (3) A filing that includes credit scoring shall include loss experience justifying the use of credit information. […]

§ 23-67-410. Indemnification

(a) An insurer shall indemnify, defend, and hold agents harmless from and against all liability, fees, and costs arising out of or relating to the actions, errors, or omissions of a producer who obtains or uses credit information or credit scores, or both, for an insurer, provided the producer follows the instructions of or procedures […]

§ 23-67-411. Sale of policy term information by consumer reporting organization

(a) (1) No consumer reporting agency shall provide or sell data or lists that include any information that, in whole or in part, was submitted in conjunction with an insurance inquiry about a consumer’s credit information or a request for a credit report or credit score. (2) The information includes, but is not limited to: […]

§ 23-67-412. Fair Credit Reporting Act

The provisions of this subchapter shall be subject to the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.

§ 23-67-413. Individual underwriting allowed

Nothing in this subchapter is intended to prevent an insurer from considering each risk on an individual basis, looking at individual risk characteristics and other factors predictive of future loss.

§ 23-67-414. Rules

The Insurance Commissioner may make reasonable rules necessary for or as an aid to the effectuation of any provision of this subchapter.