Relating to prohibiting the use of credit scoring in certain lines of personal insurance.

HB 2741 prohibits insurers in Texas from using credit scores or credit reports when underwriting, rating, or denying coverage for personal insurance policies (such as auto or home insurance). It directly affects consumers applying for these policies, as insurers can no longer consider credit history to set premiums, deny coverage, cancel policies, or apply discounts. The bill amends Texas Insurance Code sections to explicitly ban actions like charging higher premiums based on credit scores or refusing coverage solely due to credit information. This creates a clear policy change requiring insurers to rely on non-credit factors for personal insurance decisions. The bill remains pending in the Insurance Committee as of April 2025.