HB4286 would prohibit insurers from using an applicant’s or policyholder’s credit information or credit-based insurance score when deciding whether to deny, cancel, or nonrenew a personal insurance policy, or when setting policy rates. The bill also clarifies that insurers may still use their own payment history information, insurance claims history reports, and other non-credit-based reports.
The bill further amends Oklahoma’s insurance fee provisions to clarify that certain fees may be charged and collected, but must be fully disclosed and limited to the insurer’s actual expense. It also defines fees to include items such as installment fees, service charges, membership fees, policy fees, motor vehicle record fees, inspection fees, late fees, electronic transfer fees, credit score fees, and expense load fees, while prohibiting duplicate fees or minimum premium charges by producers and related intermediaries. The bill repeals two existing statutes governing insurers that use credit information and exceptions to those rules, and it takes effect November 1, 2026.
Impact
HB4286 would significantly change Oklahoma insurance underwriting and rating law by removing credit-based insurance scoring as a permissible factor for personal lines decisions and premium setting. It would also repeal existing statutory provisions on insurers’ use of credit information and related exceptions, while preserving insurers’ ability to rely on non-credit underwriting data such as claims history and payment history. In addition, the bill reinforces disclosure and actual-cost limits for certain insurance fees and maintains restrictions on duplicate fee or minimum premium charges by producers and brokers.
Sentiment
Based on the available record, the bill appears to have been introduced and referred to the House Insurance Committee without recorded committee debate or votes in the provided materials. The caption and text suggest a consumer-protection approach aimed at limiting the role of credit in insurance pricing and eligibility. Because no transcripts or vote history are included, there is no documented public sentiment in the record beyond the bill’s apparent policy direction.
Contention
The main point of contention is likely the prohibition on using credit information or credit-based insurance scores in underwriting and rate-setting, which can be viewed as protecting consumers from potentially unfair pricing but may be opposed by insurers that rely on credit-based models to assess risk. Another possible issue is the bill’s treatment of fees, including the explicit reference to credit score fees and the requirement that passed-through fees equal actual expense, which may affect insurer pricing practices and producer compensation. No specific supporters or opponents are identified in the provided materials.