HF 2259: Relating to an insurer’s use of credit information for a motor vehicle financial liability coverage policy

What it does

Under current law, an insurer authorized to operate in Iowa is authorized to use credit information to underwrite or rate risks for a policy of personal insurance, including for private passenger automobiles, snowmobiles, and recreational vehicles. However, an insurer cannot use credit information to deny, cancel, or refuse renewal of a policy solely on credit information, without considering other relevant underwriting factors; to determine renewal rates based solely on credit information, ignoring other applicable factors; to take adverse action because a consumer lacks a credit card account, without considering other factors; to consider absence of credit information in underwriting as a negative factor; to take adverse action based on credit information unless the insurer has an updated credit report or insurance score from the prior days; or use credit information months or later after obtaining the credit information, with certain exceptions provided.

In plain words

1. February 3, 2026Filed in the House and sent to the Commerce committee