Privacy Law Library

Use of Credit Information (personal insurance)

IN Insurance Credit Scoring

Credit reporting · Financial

Based on the NCOIL credit-scoring model, this chapter limits how personal-lines insurers use credit information. It bans scores built on income, gender, address, ZIP code, ethnicity, religion, marital status, or nationality, and bars decisions based solely on credit. It also requires disclosure, adverse-action notices, re-rating after credit corrections, and filing of scoring models.

Where
Indiana
Citation
Ind. Code ch. 27-2-21 (IC 27-2-21-0.1 to 27-2-21-23)
Status
In force
In force since
2004-01-01
Enforced by
Indiana Insurance Commissioner / Department of Insurance
People can sue
No
Penalties
A violation by an insurer is an unfair and deceptive act in the business of insurance under IC 27-4-1-4 (IC 27-2-21-23).
Applies to
  • Insurers that use credit information or insurance scores to underwrite or rate personal auto or property insurance (Class 2 or Class 3 policies for personal use), and consumer reporting agencies (IC 27-2-21-13, 27-2-21-14, 27-2-21-22)

What a privacy notice must say

  • Disclose at application, in writing or in the same medium, that credit information may be obtained.IC 27-2-21-18
  • For adverse actions based on credit, give the FCRA notice plus clear, specific reasons.IC 27-2-21-19

Practices it requires

  • Do not use insurance scores that factor in income, gender, address, ZIP code, ethnic group, religion, marital status, or nationality, and do not deny, cancel, non-renew, or set renewal rates solely on credit information.IC 27-2-21-16
  • Re-underwrite and re-rate within 30 days after notice that the insured's credit information was corrected through FCRA dispute resolution.IC 27-2-21-17
  • Consumer reporting agencies may not sell lists built from insurance credit inquiries, such as policy expiration data, except to the requesting producer or insurer.IC 27-2-21-22

Registration

  • File insurance scoring models with the Department of Insurance; filings are confidential.IC 27-2-21-20

Sources

Checked against these sources on 2026-09-25 by research agent (Claude), primary sources.

Unverified: The effective date is inferred from IC 27-2-21-0.1 (applies to applications and policies after December 31, 2003).

Research reference, not legal advice.