19 Miss. Code. R. 1-31.05

Current through December 10, 2024

Rule 19-1-31.05 - Requirements

A. Insurers must maintain and make available upon request by the Department specific written procedures detailing their practices regarding credit history and insurance scores, including the following information:

1. When credit history will be ordered and when insurance scores will be ordered or calculated, e.g. at initial underwriting, upon applicant's request, etc;

2. About whom such information will be ordered or calculated, e.g. the named applicant, all known household members, etc; and,

3. How such information will be used, e.g. to calculate rates, to determine eligibility for coverage, etc.

B. If an insurer relies, in whole or in part, on an insurance score to initially underwrite or rate any applicant, or to re-underwrite or re-rate any existing class or subclass of insureds, or for tier placement, the insurer shall, before its use in determining any applicant's risk, file the insurance scoring model with the Commissioner. A Third Party may file scoring models on behalf of personal lines insurers licensed in this state. This filing shall include the factors or characteristics from an applicant's credit history that are utilized in determining an insurance score, and the algorithm, computer program, model, or other process used in determining an insurance score. The underlying support, including statistical validation, for the development of the algorithm, computer program, model, or other process that is used in determining an insurance score shall also be filed.

C. If an insurer relies, in whole or in part, on credit history or an insurance score to initially underwrite or rate any applicant, or to underwrite or re-rate an existing class or subclass of insureds, or for tier placement, the insurer shall maintain and make available upon request by the Department samples of the notification and disclosure forms utilized by the insurer as required in Section 7 of this Regulation. The insurer shall also maintain and make available upon request by the Department evidence that the notification and disclosure forms as required in Section 7 of this Regulation were furnished to the applicant.

D. If an applicant is eligible for a particular rate or tier based on all other criteria, except for the fact that an applicant's credit history or insurance score is unavailable ("no-hit") or incomplete ("thin file") for that applicant, the applicant will be given that rate or tier unless said insurer files and the Department concurs with actuarial documentation which supports other practices. The actuarial documentation shall include age segmentation as well as other reasonable criteria. Notwithstanding the above, the insurer may treat the applicant as if the applicant had neutral credit.

E. If it is determined through the dispute resolution process set forth in the federal Fair Credit Reporting Act, 15 USC 1681 i(a)(5), that the credit history of an insured is incorrect or incomplete and if the insurer receives notice and documentation of this determination from either the consumer reporting agency or the insured, the insurer shall within thirty (30) days after receiving notice:

1. Re-underwrite or re-rate the insured; and,

2. Adjust the premium as indicated in Subsection G below.

F. If it is determined through the dispute resolution process set forth in the federal Fair Credit Reporting Act, 15 USC 1681 i(a)(5), that the credit history of an applicant is incorrect or incomplete and if the insurer receives notice and documentation of this determination from either the consumer reporting agency or the applicant, the insurer shall within thirty (30) days after receiving the notice correct its records by removing the incorrect or incomplete information pertaining to the applicant.

G. If it is determined by the re-underwriting or re-rating in accordance with Subsection E. above that the insured has overpaid the premium, the insurer shall refund or credit to the insured the amount of the overpayment of premium. Such refund shall be calculated back to the shorter of either the last twelve (12) months or the actual policy period.

H. Any filing made in response to Section 5.B. of this Regulation is considered to be a commercially valuable trade secret and proprietary information of the entity filing the information. Any release of information that is filed with the Department on a proprietary basis shall be governed by Miss. Code Ann. § 25-61-9 (Rev. 1999). Any proprietary information shall be submitted under separate cover and must clearly state the desires of the party filing the information as to its confidentiality.

I. An insurance company writing personal insurance that uses credit history or insurance scores, in whole or in part, to initially underwrite or rate any applicant, or to re-underwrite or re-rate any existing class or subclass of insureds, or for tier placement, shall provide its producers with informational materials pertaining to the company's use of credit history or insurance scores in the underwriting and rating of its policies.

19 Miss. Code. R. 1-31.05

Miss. Code Ann. § 83-5-29 (Rev. 2011)