19 Miss. Code. R. 1-31.06

Current through January 14, 2025

Rule 19-1-31.06 - Prohibited Procedures

A. Insurers shall not deny, cancel or non-renew personal insurance coverage, calculate an insurance score, determine personal insurance premiums or rates, or place an applicant in a tier based on the following types of credit history:

1. The type of credit card, charge card or debit card used by an applicant.

2. Credit information that the insurer knows to be in dispute, if it is disputed on the applicant's credit report.

B. Insurers shall not deny, cancel or non-renew personal insurance coverage, determine personal insurance premiums, or place an applicant in a tier based solely on a lack of credit history or insurance score ("no-hit") or incomplete credit history ("thin file"), if the insurer has received accurate and complete information from the applicant.

C. Insurers shall not refuse to insure an applicant based solely on the applicant's credit history or insurance score (where insurance score is based solely on credit history), without consideration of any other applicable factor independent of credit history.

D. Insurers shall not rely solely on an applicant's credit history or insurance score (where insurance score is based solely on credit history) when electing to cancel or non-renew a policy, without consideration of any other applicable factor independent of credit history.

E. Insurers shall not use credit history or insurance score for any arbitrary, capricious, or unfairly discriminatory reason.

F. Insurers shall not request an applicant's credit history or an insurance score based on residence, sex, race, color, creed, occupation, income, physical handicap, or disability of an applicant.

G. Insurers shall not cancel or refuse to issue or renew a policy solely because the applicant does not have a credit card account.

H. Insurers shall not base an insured's initial or renewal rates for personal insurance or make a determination on an insured's application for another line of personal insurance solely upon credit history or insurance score (where insurance score is based solely on credit history), without consideration of any other applicable factor independent of credit history.

I. Insurers or Third Parties shall not use the following as a negative factor in any insurance scoring methodology or in reviewing credit history for the purpose of underwriting or rating a policy of personal insurance:

1. Credit inquiries not initiated by the applicant or inquiries requested by the applicant for his or her own credit information.

2. Inquiries relating to insurance coverage.

3. Collection accounts with a medical industry code, if identified in the credit history.

4. Multiple lender inquiries from the home mortgage industry made within thirty (30) days of one another, unless only one (1) inquiry is considered.

5. Multiple lender inquiries from the automobile lending industry made within thirty (30) days of one another, unless only one (1) inquiry is considered.

19 Miss. Code. R. 1-31.06

Miss. Code Ann. § 83-5-29 (Rev. 2011)