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Bill

HB 3021

Relating to the use of a consumer's credit score in the underwriting or rating of certain personal lines property and casualty insurance policies.

89th Legislature (2025) Introduced by John Smithee

Texas bill HB 3021 prohibits insurers from using credit scores to underwrite or rate homeowners and auto insurance, limiting pricing discrimination based on financial history rather than driving records or claims.

Reported favorably as substituted
#creditscoring(s0521) #insurance--property&casualty(i0442)
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Bill Summary · HB 3021

Legislative bill overview

HB 3021 restricts insurance companies' ability to use consumers' credit scores when underwriting or rating personal lines property and casualty insurance policies in Texas. The bill limits how credit information can factor into insurance pricing and approval decisions for policies like homeowners and auto insurance.

Why is this important

Insurance rates significantly affect household budgets, and credit scores are increasingly used as pricing tools by insurers. This bill addresses concerns that credit-based insurance scores can disproportionately impact lower-income individuals and those with financial hardships unrelated to their actual insurance risk, potentially creating barriers to affordable coverage.

Potential points of contention

  • Insurance industry opposition: Insurers argue credit scores correlate with claim frequency and loss severity, and restricting their use could force them to raise rates broadly or deny coverage to higher-risk applicants
  • Actuarial fairness debate: Disagreement over whether credit scores reflect genuine risk factors versus serving as a proxy for demographic characteristics that may trigger discrimination concerns
  • Market impact uncertainty: Questions about whether restrictions could reduce competition or increase premiums for responsible consumers who would have received better rates under credit-based pricing models

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

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