INSURANCE PREMIUMS: Prohibits the use of a consumer's credit information and zip code in the underwriting or rating of auto insurance premiums. (8/1/26)

2026 Regular Session Introduced by Royce Duplessis

Prohibits auto insurers in Louisiana from using a consumer’s credit information or ZIP codes in underwriting or rating auto policies.

Introduced in the Senate; read by title. Rules suspended. Read second time and referred to the Committee on Insurance.

Bill Summary: SB 267 (Louisiana) – 2026 Legislative Session

Purpose and intent

SB 267 aims to restrict the use of certain consumer data in auto insurance underwriting and rating. Specifically, it would prohibit insurers from using a consumer’s credit information or ZIP code when determining auto insurance premiums or eligibility.

Key provisions

Enacts new Section R.S. 22:1508(C) to govern underwriting and rating for automobile insurance.

Prohibitions:

No insurer may use a consumer’s credit information in underwriting or rating automobile insurance.
No insurer may use a single United States Postal Service ZIP code or a combination of ZIP codes in underwriting or rating automobile insurance.

Effective date: August 1, 2026.

Authority: Adds the new subsection to existing Louisiana Revised Statutes (R.S. 22), clarifying that these restrictions apply to auto insurance specifically.

Affected parties and impact

Affected: Auto insurers operating in Louisiana and Louisiana consumers seeking auto insurance.

Practical impact:

Insurers cannot factor credit scores, credit-based insurance scores, or credit history into premium calculations or policy underwriting decisions for auto coverage.
Insurers cannot rely on ZIP code data (whether a single ZIP code or clustered ZIP codes) as a rating or underwriting factor for auto policies.
Potential effects on premium variability, eligibility, and pricing strategies that had historically used credit data or geographic clustering as risk indicators.

Broader implications: This aligns Louisiana with consumer protections used in some other states that limit or prohibit credit-based underwriting for auto insurance and may affect risk segmentation and pricing precision.

Procedural and timeline aspects

Status: Introduced in the Senate (March 9, 2026) and referred to the Committee on Insurance; prefiling occurred February 27, 2026.

Next steps: If advanced and enacted, the provisions would become effective on August 1, 2026, creating a clear compliance deadline for insurers.

Legislative notes: The bill includes an “initial notification” framing, establishing that insurers must refrain from using credit information and ZIP codes in auto underwriting/rating.

Summary of significance

SB 267 represents a targeted consumer protection measure affecting how auto insurance premium decisions are made. By barring credit information and ZIP code-based ratings, the bill seeks to reduce potential price discrimination based on credit history or geographic area, potentially increasing access and affordability for some consumers while reducing certain risk-based pricing tools for insurers.