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

Georgia law currently allows insurers to use credit information and insurance scores (numbers derived from credit data) to help decide premiums, eligibility, and policy terms for personal insurance such as auto, homeowners, motorcycle, and boat policies. This bill would reverse that. It rewrites the definitions section of the law (O.C.G.A. § 33-24-90) to trim references tied to credit-based scoring, then completely replaces the section that governs credit use (O.C.G.A. § 33-24-91). The new version bars insurers, agents, and rating organizations from using credit reports, insurance scores, or other credit information for underwriting, pricing, coverage eligibility, surcharges, discounts, cancellations, or nonrenewals of personal insurance. It also forbids penalizing a consumer for having no credit history and bans using any substitute variable or algorithm that functions as a stand-in for credit data. The bill repeals several related Code sections (33-24-92 through 33-24-98) and would take effect July 1, 2026, applying to policies issued or renewed on or after October 1, 2026.

• Bans insurers, agents, and rating organizations from using credit reports or insurance scores to underwrite, price, or set eligibility for personal insurance policies.
• Prohibits adverse actions, such as coverage denial, cancellation, or premium increases, based on a consumer's credit information, insurance score, or lack of credit history.
• Bans use of any variable, algorithm, or model that acts as a proxy for credit information in personal insurance decisions.
• Prohibits insurers from requesting credit reports for personal insurance purposes at all.
• Repeals Code Sections 33-24-92 through 33-24-98, removing related existing rules on credit-based insurance scoring.
• Sets the law to take effect July 1, 2026, applying to policies issued or renewed on or after October 1, 2026.

Insurance companies, agents, and rating organizations that sell personal insurance in Georgia, including auto, homeowners, motorcycle, mobile home, boat, and recreational vehicle insurers, as well as Georgia consumers who buy or renew these policies and whose credit history currently can affect their premiums or coverage.

If enacted, Georgia drivers and homeowners with poor or no credit history could no longer see their auto or homeowners insurance premiums or coverage decisions influenced by that credit history, while insurers would lose a tool they currently use to help predict risk and set prices.

• Section 1 revises the definitions in O.C.G.A. § 33-24-90, removing the 'affiliate' definition and narrowing the 'consumer' definition to drop references to credit-based scoring.
• Section 2 repeals and replaces O.C.G.A. § 33-24-91, listing eight prohibited uses of credit information in personal insurance, including underwriting, pricing, and cancellations.
• Section 2 also bars adverse actions based on credit information, insurance scores, or absence of credit history, and bans proxy variables or algorithms that substitute for credit data.
• Section 3 repeals Code Sections 33-24-92 through 33-24-98, which previously contained additional rules tied to credit-based insurance scoring.
• Section 4 sets the effective date as July 1, 2026, applying to policies executed, delivered, issued, or renewed on or after October 1, 2026.

1. 2026-02-17Senate Read and Referred (Senado)
2. 2026-02-12Senate Hopper (Senado)

• Nabilah Islam Parkes (D, SD-007)Patrocinador principal
• Nan Orrock (D, SD-036)
• Harold Jones (D, SD-022)
• Randal Mangham (D, SD-055)
• Tonya Anderson (D, SD-043)
• Nikki Merritt (D, SD-009)
• RaShaun Kemp (D, SD-038)
• Jaha Howard (D, SD-035)
• Derek Mallow (D, SD-002)

• insurance regulation
• credit scores
• auto insurance
• homeowners insurance
• consumer protection