H.B. 2544 does not ban the use the consumer credit information or scores by insurers.

Instead, it requires that an insurer that takes "adverse action" against a consumer based in whole or in part on credit history or an insurance score provide written notice to the consumer. The notice must indicate the "significant factors" of the credit history or insurance score that led to the adverse action.

Further, the bill sets out different components of a person's credit history that insurers may not use in making underwriting and rating decisions.

These include the absence of credit history or the inability to determine the consumer's credit history, the number of credit inquiries made within a period of time, and the consumer's use of a particular type of credit, charge or debit card.

Additionally, the bill provides that credit history cannot be used to determine personal insurance rates, premiums, or eligibility for coverage "unless the insurance scoring models" are filed with the insurance regulator.

The National Association of Independent Insurers, based in Des Plaines, Ill. said it felt the measure that was passed "is an improvement over a previous version, which included rate caps."

But the NAII said the bill, once signed into law, could have "the unintended impact of making insurance less available and dilute the effectiveness of using insurance scores to determine risks."

This in turn would reduce competition and deny many policyholders "the discounts they deserve," the NAII stated.

The NAII indicated that Utah is its next "battleground."

With the Utah session scheduled to adjourn today, trade groups and insurance companies continue efforts to defeat House Bill 110, which allows insurers to use insurance scoring only for auto insurance discounts.

The bill was approved in the Senate Transportation and Public Safety Committee last week and is eligible for a vote on the Senate floor.

The NAII also reported that Idaho and Maryland joined California, Indiana and Utah last week as the only states with legislation to pass one chamber. At the same time, bills in Alaska, Georgia and Minnesota were approved in committee.