Missouri House Bill HB2632

Missouri 2026 Regular Session

• Introduced: 1/7/26

Caption

Prohibits an insurer from utilizing information from a credit reporting agency or insurance credit scores from consumer reporting agency in determining certain insurance rates

Impact

The proposed bill would repeal the existing section of state law regarding the use of credit scores and enact new provisions meant to safeguard applicants and policyholders. By restricting the weight that credit information carries in insurance underwriting, the bill aims to mitigate situations where individuals might face inequitable treatment based solely on their credit history, thus potentially impacting a significant number of residents who rely on automobile or property insurance coverage.

Summary

House Bill 2632 introduces significant changes to how insurers utilize credit scores and credit reports in determining insurance rates for their policies. It stipulates that insurers cannot take an adverse action, such as denial or a reduction of coverage, solely based on credit reports or insurance credit scores unless they consider another noncredit-related underlining factor. This change is geared towards enhancing consumer protection and promoting fairness in the underwriting process, especially for those who may have low credit scores but pose low risk to insurance companies.

Contention

Supporters of HB 2632 argue that credit scores are not always representative of an individual's risk or character, and using them as primary factors in insurance decisions creates unnecessary barriers to obtaining insurance. However, opponents may contend that eliminating the consideration of credit scores could lead to increased risks for insurers, as individuals with poor credit may correlate with higher risk profiles. As such, the bill places emphasis on a more holistic approach to underwriting, balancing the interests of consumers against the profitability concerns of insurers.