Texas Insurance Code 559.101 – Negative Factors
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Terms Used In Texas Insurance Code 559.101
- Credit report: A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness. Source: OCC
An insurer may not use any of the following as a negative factor in any credit scoring methodology or in reviewing credit information to underwrite or rate a policy of personal insurance:
(1) a credit inquiry that is not initiated by the consumer;
(2) an inquiry relating to insurance coverage, if so identified on a consumer’s credit report; or
(3) a collection account with a medical industry code, if so identified on the consumer’s credit report.