Use of consumer reports and consumer information in a discriminatory manner prohibited

(a)

In general

Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is amended— (1)in subsection (a), by striking Subject to subsection (c) and inserting Subject to subsections (c) and (h); and (2)in subsection (c)(1), by striking A consumer reporting agency and inserting Subject to subsection (h), a consumer reporting agency. (b)

Prohibition on certain discriminatory uses of consumer reports and consumer information in connection with insurance

Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is amended by adding at the end the following new subsection:

(h)

Prohibition on certain discriminatory uses of consumer reports and consumer information in connection with insurance

(1)

In general

No consumer reporting agency may furnish a consumer report or consumer information with respect to any consumer to any person for use in making any decision to underwrite or rate any personal lines of insurance, and no person shall use or obtain a consumer report or consumer information with respect to any consumer in connection with the underwriting or rating of any personal line of insurance, for which the Commission determines, including any finding or determination made in any study for which a report is submitted to the Congress, that any such use of the consumer report or the consumer information— (A)results in racial or ethnic discrimination; or (B)represents a proxy or proxy effect for race or ethnicity. (2)

Insurance information not included

Information derived from the following data bases shall not be treated as a consumer report or consumer information for purposes of paragraph (1): (A)Databases that contain information on property loss data regarding personal lines of insurance, such as the Comprehensive Loss Underwriting Exchange (CLUE) and Automobile-Property Loss Underwriting System (A–PLUS). (B)Databases that contain information on driver history, such as accidents or moving violations, typically maintained at State departments of motor vehicles. (C)Databases that contain information on a consumer’s medical history, to the extent such access and use for purposes described in paragraph (1) is consistent with the requirements of section 604(g). (3)

Effect on state laws

Notwithstanding section 625(b)(3)(C), no provision of this section shall be construed as limiting or superseding the application of any State laws or regulations that restrict or prohibit the use of consumer reports or consumer information in the underwriting or rating of any personal lines of insurance. (4)

Definitions

For purposes of this subsection, the following definitions shall apply: (A)

Consumer information

The term consumer information means any information from the file on any consumer at a consumer reporting agency, or any product derived from any such information. (B)

Personal line of insurance

The term personal line of insurance means any personal automobile or homeowners line of insurance, as defined in the Uniform Property and Casualty Product Coding Matrix established and maintained by the National Association of Insurance Commissioners (or any successor to such document). (C)

Proxy for race or ethnicity

The term proxy for race or ethnicity means a substitute or stand-in for race or ethnicity, either by design or in effect, without regard to the extent of the effect.