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Bill

SB 507

Underwriting and Rate Risking; use of credit information and credit scores in underwriting, rating risks, adverse actions, or certain other actions by insurance companies; prohibit

2025-2026 Regular Session Introduced by Tonya Anderson and 8 co-sponsors

Georgia bill prohibits insurers from using credit scores and credit information in underwriting, rating, and underwriting decisions to reduce financial discrimination in insurance pricing.

Senate Read and Referred
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Bill Summary · SB 507

Legislative bill overview

SB 507 would prohibit Georgia insurance companies from using credit information and credit scores in underwriting decisions, rate-setting, risk assessment, and adverse actions against policyholders. The bill aims to remove credit-based factors from insurance pricing and eligibility determinations statewide.

Why is this important

Insurance rates significantly affect household budgets, and credit scores often correlate with socioeconomic status rather than actual insurance risk. This bill addresses concerns that credit-based underwriting may perpetuate financial inequity by charging higher premiums to those with lower credit scores, regardless of their actual claims history. The change would fundamentally reshape how Georgia insurers price policies and assess risk.

Potential points of contention

  • Insurance industry opposition: Insurers argue credit information is a predictive tool for claims likelihood and that removing it will increase rates for good-credit customers to subsidize higher-risk pools
  • Actuarial data concerns: Insurers claim empirical underwriting data supports credit-score correlation with losses, and restricting this data limits risk-based pricing accuracy
  • Market availability and affordability: Restricting underwriting criteria could reduce competition or availability in certain market segments, potentially harming rather than helping consumers in high-risk categories
  • Comparative state approaches: Other states allowing credit use may attract insurers, creating competitive disadvantages for Georgia's market

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

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