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Bill

SB 1435

Insurance; prohibiting use of credit information in personal insurance. Effective date.

2026 Regular Session Introduced by Julia Kirt

Oklahoma bill prohibits insurers from using credit information to set personal insurance rates, potentially lowering costs for poor-credit consumers but raising rates for others.

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Bill Summary · SB 1435

Legislative bill overview

SB 1435 prohibits Oklahoma insurance companies from using credit information (credit scores, credit history, etc.) as a factor in determining personal insurance rates, premiums, or coverage eligibility. The bill passed the Business and Insurance Committee with amendments and is moving through the legislative process.

Why is this important

Credit-based insurance scoring is a common industry practice that can significantly affect how much consumers pay for auto, home, and other personal insurance. Prohibiting this practice could lower insurance costs for consumers with poor credit histories, though it may also affect how insurers assess risk and price policies.

Potential points of contention

  • Insurance industry opposition: Insurers argue credit information correlates with claim frequency and may be needed for accurate risk assessment and pricing; removing it could force rate increases across the board
  • Cost distribution concerns: Without credit scoring, insurers may shift to other rating factors or increase base rates, potentially raising costs for good-credit consumers to subsidize others
  • Regulatory precedent: Only a handful of states ban credit-based insurance scoring; this creates competitive concerns for Oklahoma insurers versus neighboring states

Compiled from official sources — confirm details with the bill’s official record.

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