1.1                          A bill for an act 
  1.2             relating to consumer protection; requiring insurance 
  1.3             companies to provide a written notice of adverse 
  1.4             underwriting decisions made on the basis of credit 
  1.5             information given to the insurer by a consumer 
  1.6             reporting agency; amending Minnesota Statutes 1998, 
  1.7             section 72A.499, subdivision 1. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 72A.499, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [NOTICE AND INFORMATION.] In the event of 
  1.12  an adverse underwriting decision, the insurer or insurance agent 
  1.13  responsible for the decision shall provide in writing to the 
  1.14  applicant, policyholder, or individual proposed for coverage: 
  1.15     (1) the specific reason or reasons for the adverse 
  1.16  underwriting decision, a summary of the person's rights under 
  1.17  sections 72A.497 and 72A.498, and that upon request the person 
  1.18  may receive the specific items of personal information that 
  1.19  support those reasons and the specific sources of the 
  1.20  information; or 
  1.21     (2) the specific reason or reasons for the adverse 
  1.22  underwriting decision, the specific items of personal and 
  1.23  privileged information that support those reasons, the names and 
  1.24  addresses of the sources that supplied the specific items of 
  1.25  information specified, and a summary of the rights established 
  1.26  under sections 72A.497 and 72A.498. 
  2.1      If the adverse underwriting decision is either solely or 
  2.2   partially based upon a report of credit worthiness, credit 
  2.3   standing, or credit capacity that an insurer receives from a 
  2.4   consumer reporting agency, the insurer or insurance agent must 
  2.5   also provide in writing to the applicant, policyholder, or 
  2.6   individual proposed for coverage the specific reason or reasons, 
  2.7   including credit scores, codes, or other credit-based 
  2.8   information used by the insurer in its underwriting.  If the 
  2.9   information is based upon a credit score or code, the insurer or 
  2.10  insurance agent must provide a written, easily understandable 
  2.11  explanation of the score or code and the name, address, and 
  2.12  telephone number of the consumer reporting agency providing the 
  2.13  information.