Bill
HB 5608
HB 5608 would prohibit or restrict using a person’s credit history in insurance underwriting, pricing, and placement to promote fairer access to insurance.
HB 5608 (Session 2026) - West Virginia
Prohibiting use of a person’s credit history in certain insurance transactions
Overview
HB 5608 seeks to restrict the use of an individual’s credit history in specific insurance-related decisions. The bill aims to limit or prohibit insurers from using credit information to determine eligibility, rates, or coverage terms in defined insurance transactions.
Main purpose and intent
- To curb reliance on a consumer’s credit history in insurance underwriting and pricing.
- To promote fairer access to insurance by reducing potential discriminatory or non-transparent rating practices tied to credit data.
- To align insurance practices more closely with consumer protection norms and, potentially, with legal frameworks in other states that restrict credit-based insurance scoring.
Key provisions and changes (substantive aspects)
- Prohibition scope: The bill prohibits (or severely restricts) the use of an individual's credit history in specific insurance transactions. The exact scope (which lines of insurance—auto, homeowners,etc.—and which actions are restricted) would be defined in the full text, but the intent is to limit credit-based decisions in underwriting, pricing, and placement.
- Definitions: The bill would define terms such as "credit history," "insurance transaction," "underwriting," and related terms to ensure clarity on what is restricted.
- Exceptions or safe harbors: Provisions may include narrow exceptions (e.g., where state or federal law requires use of credit data, or for minimum coverage requirements) or allow limited use under certain circumstances. The specific exceptions would be spelled out in the bill.
- Consumer protections: The bill could require insurers to justify any denial or non-renewal or higher premium that would otherwise be attributed to prohibited credit-based factors, and possibly provide notice or appeal rights to consumers.
- Compliance and enforcement: The bill would establish regulatory responsibilities for monitoring compliance, including potential penalties for violations and procedures for complaints.
Who/what would be affected
- Insurance companies and producers (agents/brokers) engaged in underwriting, rating, and policy issuance for personal lines of insurance (e.g., auto, home) and possibly other insurance types covered by the bill.
- Consumers applying for or renewing insurance who previously faced credit-based premium adjustments or eligibility decisions.
- State regulators or the Department responsible for insurance oversight, with enforcement authority to ensure adherence to the prohibition.
Procedural and timeline aspects
- Introduction and referrals: Filed on February 16, 2026, with referrals to the House Finance Committee.
- Legislative path to date: Introduced in the House and referred to House Finance; sponsor list includes Co-sponsors John Williams, Sean Hornbuckle, and Shawn Fluharty.
- Next steps (typical): If advanced, the bill would undergo committee hearings, potential amendments, floor votes in the House, then move to the Senate for a parallel process, and ultimately to the governor for signature or veto. The precise timelines depend on the chamber calendars and any committee schedules.
Potential impacts and considerations
- Consumer protection: Could reduce discrimination or inequitable pricing based on credit history, improving access for high-risk or credit-challenged individuals.
- Insurance market effects: Insurers might adjust by relying on alternative underwriting factors or by absorbing potential risk differently; some premium variations could shift away from credit-based models.
- Compliance burden: Insurers would need to adjust underwriting systems, data use policies, and disclosures to align with new prohibitions.
Notes
- The exact text would specify the prohibited practices, any defined exceptions, penalties, and implementing timelines. The summary above reflects the bill’s stated aim and likely structural elements based on the title and typical model language for credit-use restrictions in insurance.
Compiled from official sources — confirm details with the bill’s official record.
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