Senate · Introduced · 2025-2026 Regular Session

SB507: SB507 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

Last action February 17, 2026 · Senate Read and Referred

A Georgia Senate bill would ban insurance companies from using credit reports or credit-based insurance scores to set prices, underwrite, or take adverse action on personal insurance policies like auto and homeowners coverage.

In plain language

Under current Georgia law, insurers can use a customer's credit information and a credit-based "insurance score" to help decide whether to offer coverage, what to charge, and whether to raise rates or cancel a policy. This bill would end that practice for personal insurance, which includes private passenger auto, homeowners, motorcycle, mobile home, boat, and similar individually underwritten policies. The bill rewrites Georgia's underwriting and rate risking law (O.C.G.A. Article 4, Chapter 24, Title 33) to bar insurers, agents, and rating organizations from using credit reports, insurance scores, or any algorithm that acts as a substitute for credit data in underwriting, pricing, tiering, surcharges, discounts, cancellations, or nonrenewals. It also repeals several existing code sections that currently regulate how credit information may be used. The changes would take effect July 1, 2026, and apply to policies issued or renewed on or after October 1, 2026.

What the bill does

Bars insurers, agents, and rating organizations from using credit reports, insurance scores, or other credit information for underwriting, pricing, eligibility, tiering, surcharges, discounts, cancellations, or nonrenewals of personal insurance.
Prohibits insurers from taking any adverse action, such as denying, canceling, or raising rates on a policy, based on a consumer's credit information, insurance score, or lack of credit history.
Bans insurers from using any variable, algorithm, or model that functions as a substitute (proxy) for credit information.
Removes the current legal definition of 'adverse action' tied to credit-based underwriting and streamlines other definitions in the law.
Repeals Code Sections 33-24-92 through 33-24-98, eliminating the existing detailed rules that currently govern how credit information may be used in insurance.
Sets the law to take effect July 1, 2026, applying to policies and contracts issued or renewed on or after October 1, 2026.

Who it affects

The bill affects insurance companies, agents, and rating organizations that sell personal lines like auto, homeowners, motorcycle, mobile home, boat, and recreational vehicle insurance in Georgia, as well as consumer reporting agencies that supply credit data, and the Georgia consumers who buy these policies.

Why it matters

If enacted, Georgia consumers' credit history and credit-based insurance scores would no longer factor into what they pay for personal insurance or whether they can get or keep coverage. Insurers would have to rely on other underwriting factors, which could change premiums for many policyholders.

Key provisions

Section 1 revises the definitions in O.C.G.A. § 33-24-90, removing the standalone 'adverse action' definition tied to credit factors and renumbering the remaining terms, including 'credit information,' 'credit report,' and 'insurance score.'
Section 2 repeals and replaces O.C.G.A. § 33-24-91 with a new section banning use of credit reports, insurance scores, or credit information for underwriting, eligibility, categorization, risk rating, pricing, surcharges/discounts, and cancellations or nonrenewals of personal insurance.
Section 2 also bars adverse action based on credit information, insurance score, or absence of credit history, and bans use of proxy variables or algorithms for credit data.
Section 3 repeals Code Sections 33-24-92 through 33-24-98 in their entirety, removing the existing detailed regulatory framework for credit-based insurance underwriting.
Section 4 sets the effective date as July 1, 2026, applying to policies, contracts, and certificates issued, delivered, or renewed on or after October 1, 2026.

Status timeline

2026-02-17Senate Read and Referred (Senate)
2026-02-12Senate Hopper (Senate)

Topics

insurance regulation
credit scores
auto insurance
homeowners insurance
consumer protection