Ala. Admin. Code r. 482-1-127-.04 - Definitions

The following definitions shall apply for purposes of this chapter:

(a) Adverse Action. As described in Section 1681a (k) of the federal Fair Credit Reporting Act.

(b) Affiliate. Any company that controls, is controlled by, or is under common control with another company.

(c) Applicant. An individual who seeks to obtain, obtains, or has obtained an insurance product or service from an insurer.

(d) Company. A corporation, limited liability company, business trust, general or limited partnership, association, sole proprietorship, or similar organization.

(e) Consumer Reporting Agency. As described in Section 1681a (f) of the federal Fair Credit Reporting Act.

(f) Credit History. A written, oral, or other communication of any information by a consumer reporting agency bearing on an applicant's creditworthiness, credit standing, credit capacity, or financial responsibility that is used or expected to be used, or collected in whole or in part, for the purpose of serving as a factor in determining personal insurance premiums, eligibility for coverage, or tier placement.

(g) Denial. The act of refusing to offer personal insurance coverage to an applicant. An offer of placement with an affiliate insurer does not constitute denial, cancellation or nonrenewal of coverage.

(h) Insurance Score. A number or rating that is derived from an algorithm, computer application, model, or other process that is based in whole or in part on credit history for the purposes of predicting the future loss exposure of an applicant.

(i) Insurer. Any company providing personal lines or personal insurance in Alabama.

(j) Personal Lines or Personal Insurance. Any one of the following:

1. Private Passenger Automobile coverage.

2. Homeowner's coverage, including Renter's coverage.

3. Mobile or Manufactured Homeowner's coverage.

4. Condominium Owner's coverage.

5. Non-commercial Dwelling Fire or Dwelling Property coverage.

6. Earthquake coverage for a residence or personal property.

7. Comprehensive Personal Liability.

8. Personal Inland Marine coverage.

(k) No-Hit. An absence of credit history.

(l) Thin File. An inability to determine credit history.

(m) Tier. A category within a single insurer into which applicants with substantially like insuring risk, or exposure factors, and expense elements are placed for purposes of determining rate or premium.

Author: Commissioner of Insurance

Notes

Ala. Admin. Code r. 482-1-127-.04

New Rule: May 21, 2003, effective June 7, 2003. Filed with LRS May 28, 2003. Rule is not subject to the Alabama Administrative Procedure Act.

Statutory Authority: Code of Ala. 1975, § 27-2-17.