The use of a consumer's credit score in the underwriting or rating of certain personal lines property and casualty insurance policies

Texas Senate Bill 1644 allows insurance companies to use a consumer's credit score when determining the rates for certain personal property and casualty insurance policies. This means that a person's credit history could affect how much they pay for insurance coverage. The bill aims to create a more comprehensive assessment of risk for insurers.

Supporters of SB1644 argue that using credit scores in insurance underwriting promotes fairness by allowing insurers to better assess risk. They believe this approach can lead to more competitive pricing and potentially lower rates for responsible consumers who manage their credit well.

Critics of SB1644 contend that using credit scores in insurance decisions disproportionately affects low-income individuals and communities with less access to credit. They argue that this practice can lead to higher premiums for those who are already financially vulnerable, exacerbating existing inequalities in the insurance market.