Prohibits the use of a consumer's credit information and zip code in the underwriting or rating of auto insurance premiums. (8/1/26)

Senate Bill 267 enacts new subsection C to Louisiana Revised Statutes 22:1508, creating two categorical prohibitions on automobile insurance underwriting and rating practices. The legislation prohibits insurers from using a consumer's credit information in underwriting or rating decisions for automobile insurance policies. It further prohibits insurers from using either a single United States Postal Service zip code or any combination of zip codes as a factor in underwriting or rating automobile insurance. The statute becomes effective August 1, 2026, and operates as an outright ban rather than a disclosure requirement or regulatory limitation, eliminating these rating factors entirely from the permissible underwriting toolkit for auto insurers operating in Louisiana.

The practical effect of this legislation falls directly on auto insurance companies writing policies in Louisiana and the consumers who purchase from them. Insurers will be required to restructure their underwriting models and rating algorithms to remove credit-based scoring and geographic location factors derived from zip codes. This affects all auto insurance consumers in the state regardless of their creditworthiness or residential location, as insurers cannot differentiate rates based on these previously permissible factors. Insurance companies will need to rely on alternative rating factors such as driving history, age, vehicle type, and miles driven, potentially resulting in different premium calculations for existing and new customers.

This law modifies the existing framework established in Louisiana's insurance code regarding permissible rating factors. Under prior law codified in R.S. 22:1508, insurers had discretion to use credit information and zip codes in automobile insurance underwriting and rating decisions. The legislation effectively narrows the scope of permissible underwriting factors by carving out a specific exception to what had been standard industry practice. This change exists within the broader context of Louisiana's insurance regulation under the Louisiana Insurance Code, specifically the provisions governing personal insurance rating and underwriting. The statute targets a common industry practice of using credit-based insurance scores and geographic rating territories, reflecting a policy determination that these factors should not influence auto insurance pricing in Louisiana regardless of their statistical correlation with claims experience.