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Bill

Bill

SB 61

INSURANCE RATES: Provides for the use of credit information in underwriting or rating of certain personal insurance policies. (8/1/25)

2025 Regular Session Introduced by Regina Barrow and 26 co-sponsors

Louisiana permits insurers to use credit information in personal insurance underwriting and rating, effective July 2026, potentially raising premiums for consumers with poor credit scores.

Signed by the Governor. Becomes Act No. 465.
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Bill Summary · SB 61

Legislative bill overview

SB 61 permits Louisiana insurance companies to use credit information as a factor when underwriting and setting rates for certain personal insurance policies. The bill became law on June 30, 2025, with an effective date of July 1, 2026, giving insurers and consumers one year to prepare for the change.

Why is this important

Credit-based insurance scoring is a widespread industry practice that can significantly affect premiums consumers pay for auto, home, and other personal insurance. This bill reverses or modifies prior restrictions, potentially allowing insurers greater flexibility in pricing while raising concerns about whether consumers' financial hardship could result in higher insurance costs, creating a feedback loop where struggling families pay more for coverage.

Potential points of contention

  • Fairness concerns: Critics argue that credit scores may reflect temporary hardship (medical debt, job loss) rather than actual insurance risk, potentially penalizing financially vulnerable populations
  • Disparate impact: Research suggests credit-based scoring can correlate with race and ethnicity, raising questions about whether this practice perpetuates systemic inequities in insurance access and affordability
  • Consumer protection: Consumers may lack transparency about how credit information influences their rates and have limited recourse if they believe scoring is unfair or inaccurate

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

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