AN ACT PROHIBITING INSURANCE COMPANIES FROM USING CREDIT HISTORY AS A FACTOR IN UNDERWRITING OR RATING HOMEOWNERS INSURANCE POLICIES.

HB 5281 prohibits insurance companies from using an applicant's or insured's credit history when determining homeowners insurance rates or coverage decisions. This directly affects homeowners who apply for or maintain homeowners insurance policies. The bill amends state law to ban credit history as a factor in underwriting or rating, replacing it with other risk assessment methods. The policy change is a concrete restriction on insurer practices, effective upon enactment.