Texas has enacted Senate Bill 1644, which adds requirements for insurers that use credit scoring in the underwriting or rating of insurance.

The bill states, among other provisions, that the above-mentioned insurers must:

• use a credit report issued not more than 90 days before the policy is first issued or renewed if the insurer uses the report to take an action that results in an adverse effect with respect to the insured;
• review and update the credit report of an insured not less than every 36 months; and
• reassess the insured's policy rating and adjust premiums based on the updated credit score.

Additionally, upon the request of the insured or insured's agent, the insurer must re-underwrite and re-rate the policy based on a current credit report or insurance score, no more than once each 12-month period.

Please see Senate Bill 1644 for more information.