Definitions

Definitions The following definitions shall apply for purposes of this Regulation: A. Adverse Action - A denial, non-renewal, or cancellation of, an increase in any charge for, or a reduction or other adverse or unfavorable change in the terms of coverage or amount of any insurance, existing or applied for, in connection with the underwriting of personal insurance. B. Affiliate - Any company that controls, is controlled by, or is under common control with another company. C. Applicant - An individual who has applied to be covered by a personal insurance policy with an insurer or who is in the process of applying for such coverage. The term applicant may also include an insured whose credit information is used or whose insurance score is calculated in the underwriting or rating of a personal insurance policy or an applicant for such a policy. D. Consumer Reporting Agency - Any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties. For purposes of this Regulation, consumer reporting agency shall include any entity that prepares, assembles, evaluates, calculates and/or furnishes insurance scores. E. Credit History - Any written, oral, or other communication of information by a consumer reporting agency bearing on an applicant’s credit worthiness, credit standing or credit capacity which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor to determine personal insurance premiums, eligibility for coverage, or tier placement. F. 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. G. Insurance Score - A number or rating that is derived from an algorithm, computer application, model, or other process that is based in whole or inpart on credit history for the purpose of predicting the future insuranceloss exposure of an individual applicant or insured. H. Insurer - Any company licensed in Mississippi to write personal lines or personal insurance in Mississippi. I. No-Hit - An absence of credit history. 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. K. Thin File - An inability to determine credit history. L. Tier - A category within an insurer’s personal lines program into which applicants with substantially like insuring risk, or exposure factors, and expense elements are placed for purposes of determining rate or premium.