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Life and Health

Addendum: for use with Oregon Life and Health online courses and study guides version 27718en/27719, per exam content outline updates effective 5/1/2023.

The following are content additions to supplement your existing text unless otherwise indicated. 

LIFE AND HEALTH:

Introduction

Exam Breakdown – revised exam breakdowns

Oregon Life Insurance Examination

100 Questions

Note that in your online course, Federal Laws and Regulations are part of the Insurance Regulation chapter.

Oregon Health Insurance Examination

100 Questions

Note that in your online course, Federal Laws and Regulations are part of the Insurance Regulation chapter.

Prior to May 1, 2023, the state exam will also include questions pertaining to Dental Insurance. Please refer to that chapter in your online course for review.

Oregon Life and Health Insurance Examination

150 Questions

Note that in your online course, Federal Laws and Regulations are part of the Insurance Regulation chapter.

Prior to May 1, 2023, the state exam will also include questions pertaining to the following topics: Qualified Plans and Dental Insurance. Please refer to those chapters in your online course for review.

Life Insurance Policies

A. Term Life Insurance

Increasing Term

Increasing term features level premiums and a death benefit that increases each year over the duration of the policy term. The amount of the increase in the death benefit is usually expressed as a specific amount or a percentage of the original amount. Increasing term is often used by insurance companies to fund certain riders that provide a refund of premiums or a gradual increase in total coverage, such as the cost of living or return of premium riders.

This type of policy would be ideal to handle inflation and the increasing cost of living. It is also often added to another policy as a rider, such as with return of premium policies.

C. Flexible Premium Policies

Indexed Universal Life

Indexed universal life is a universal life policy with an equity index as its investment feature. It has many of the same characteristics as the variable universal life (flexible premiums, an adjustable death benefit, the policyowner decides where the cash value will be invested) with the primary difference being the investment feature. Under a variable universal life policy, the policy’s cash value is dependent upon the performance of one or more investment funds. Under the equity index universal policy, the policy’s cash value is dependent upon the performance of the equity index. Cash values and death benefit are not guaranteed. Sale of the equity indexed universal life product does not require a securities license (whereas the sale of variable universal life does require a securities and life license).

D. Variable Life

Variable Universal Life

Variable universal life is a combination of universal life and variable life. Like universal life, it provides the policyowner with flexible premiums and an adjustable death benefit. Like variable life, the policyowner rather than the insurer, decides where the net premiums (cash value) will be invested. Also, like variable life, the cash values are not guaranteed, and the death benefit is not fixed. The cash value and/or death benefit may increase or decrease over the life of the policy depending on the investment performance of the underlying sub-account. The death benefit, however, generally cannot decrease below the initial face amount of the policy. A producer must also be licensed for both securities and life insurance in order to sell variable universal life.

Annuities

C. Annuity Products – Investment Options

Variable Annuities

A variable annuity serves as a hedge against inflation, and is variable from the standpoint that the annuitant may receive different rates of return on the funds that are paid into the annuity. Listed below are the 3 main characteristics of variable annuities:

Variable premiums purchase accumulation units in the fund, which is similar to buying shares in a Mutual Fund. Accumulation units represent ownership interest in the separate account. Upon annuitization, the accumulation units are converted to annuity units. The income is then paid to the annuitant based on the value of the annuity units. The number of annuity units received remains level, but the unit values will fluctuate until actually paid out to the annuitant.

E. Uses of Annuities

Long-Term Care Rider

Under the Pension Protection Act of 2006, annuitants are allowed to transfer money from an annuity to pay for long-term care insurance premiums, tax free. In the past, distributions from nonqualified annuities were taxed; however, now, distributions can be used to pay for long-term care premiums and, in many cases, eliminate the taxes on the annuity gains. As a result, many insurers now offer a hybrid annuity with a long-term care feature. These policies provide for income, long-term care, or both.

Qualified Plans – chapter deleted from the outline

Health Insurance Basics

F. Producer Responsibilities in Individual Health Insurance

Statement of Good Health

In many cases, the initial premium is not paid until the policy is delivered. Most insurance companies require that when collecting the premium, the agent must also obtain a statement signed by the insured testifying to continued good health.

Effective Date of Coverage

Under the terms of the insurability conditional receipt, the insurance coverage becomes effective as of the date of the receipt, provided the application is approved. This receipt is generally provided to the applicant when the initial premium is paid at the time of application.

Premium Collection

All premiums, return premiums, or other funds received by an agent must be kept in a fiduciary capacity. An agent must, in the regular course of business, account for and pay these funds when due to the insurer, insured, or the insured’s assignee.

All funds received by an agent must be kept in a fiduciary account which is separate from all other business and personal funds. Funds deposited into the separate fiduciary account must not be commingled or combined with other funds except for the purpose of advancing premiums.

Premiums can be paid physically (by check or cash) or electronically. Payments submitted electronically are considered electronic funds transfers (EFTs) and are made through the Automated Clearing House (ACH).

Individual Health Insurance Policy General Provisions

A. Uniform Required Provisions

Entire Contract; Changes

The entire contract provision states that the health insurance policy, together with a copy of the signed application and attached riders and amendments, constitutes the entire contract. No changes may be made to the policy without the express written agreement of both parties, and any changes must also be made a part of the contract. Only an executive officer of the company, not an agent, has authority to make any changes to the policy.

Time Limit on Certain Defenses

This provision is similar to the incontestability provision found in life insurance policies. No statement or misstatement (except fraudulent misstatements) made in the application at the time of issue will be used to deny a claim after the policy has been in force for 2 years. Unlike life insurance policies, fraudulent misstatements can be contested at any time.

Physical Examinations and Autopsy

The physical exam and autopsy provision gives the insurer the right to examine the insured, at its own expense, as often as may be reasonably necessary while a claim is pending. The insurer also usually has the right to conduct an autopsy, if not forbidden by a state law.

Legal Actions

This provision limits the time during which a claimant may seek recovery from an insurer under a policy. The insured must wait 60 days, but not later than 3 years (in most states) after proof of loss, before legal action can be brought against the company.

Change of Beneficiary

The change of beneficiary provision stipulates that the policyowner may change the beneficiary at any time by providing a written request to the insurer. The consent of the beneficiary is not required. However, if the beneficiary designation is irrevocable, the policyholder must first obtain the permission of the beneficiary before any change can be made.

B. Uniform Optional Provisions

Intoxicants and Narcotics

The insurer is not liable for any claims that result while the insured is intoxicated or under the influence of drugs (unless administered by a physician). Treatment for substance abuse is usually a covered benefit under health insurance policies. This provision simply excludes any injury or sickness that results from the insured’s intoxication.

Illegal Occupation

This provision states that liability will be denied if the insured is injured while committing an illegal act or is engaged in an illegal occupation.

C. Other General Provisions

Insuring Clause

The insuring agreement or clause is usually located on the first page of the policy. It is simply a general statement that identifies the basic agreement between the insurance company and the insured. It identifies the insured and the insurance company and states what kind of loss (peril) is covered.

Probationary Period

The probationary period provision states that a period of time must lapse before coverage for specified conditions goes into effect. This provision is most commonly found in disability income policies. The probationary period also applies to new employees who must wait a certain period of time before they can enroll in the group plan. The purpose of this provision is to avoid unnecessary administrative expenses in cases of employee turnover.

Elimination Period

The elimination period is a type of deductible that is commonly found in disability income policies. It is a period of days which must expire after the onset of an illness or occurrence of an accident before benefits will be payable. The longer the elimination period, the lower the cost of coverage.

Coinsurance

Most major medical policies include a coinsurance provision that provides for the sharing of expenses between the insured and the insurance company. After the insured satisfies the policy deductible, the insurance company will usually pay the majority of the expenses, typically 80%, with the insured paying the remaining 20%. Other coinsurance arrangements exist such as 90/10; 75/25; or 50/50. The larger the percentage that is paid by the insured, the lower the required premium will be. The purpose of the coinsurance provision is for the insurance company to control costs and discourage overutilization of the policy.

Most policies also limit the amount of out-of-pocket expenses the insured can incur during a policy year. A stop-loss limit is a specified dollar amount beyond which the insured no longer participates in the sharing of expenses. The insurance company pays 100% of the expenses that are above the specified stop-loss limit.

Exclusions

Exclusions specify for what the insurer will not pay. These are causes of loss that are specifically excluded from coverage. Reductions are a decrease in benefits because of certain specified conditions. The most common exclusions in health insurance policies are injury or loss that results from any of the following:

Persons who cannot dress, clean, or feed themselves because of physical or mental problems are considered not able to care for themselves. Also, persons who must have constant attention to prevent them from injuring themselves or others are considered not able to care for themselves.

The insured may change benefits during open enrollment. After that period, generally, no other changes can be made during the plan year. However, the insured might be able to make a change under one of the following circumstances, referred to as qualified life event changes:

The IRS limits the annual contribution for Dependent Care Accounts to a specified amount that gets adjusted annually for cost of living. This is a family limit, meaning that even if both parents have access to flexible care accounts, their combined contributions cannot exceed the amount.

High-Deductible Health Plans (HDHPs)

High-deductible health plans (HDHPs) are often used in coordination with Medical Savings Accounts (MSAs), Health Savings Accounts (HSAs), or Health Reimbursement Accounts (HRAs). The high-deductible health plan features higher annual deductibles and out-of-pocket limits than traditional health plans, which means lower premiums. Except for preventive care, the annual deductible must be met before the plan will pay benefits. Preventive care services are usually first dollar coverage or paid after copayment. The HDHP credits a portion of the health plan premium into the coordinating MSA, HSA, or HRA on a monthly basis. The deductible of the HDHP may be paid with funds from the coordinating account plan.

High-deductible health plans (HDHPs) are taxed in the same manner as other traditional health plans.

Insurance Regulation

B. State Regulation

2. Company Regulation

Suitability

Each insurer that uses an insurance producer must maintain a system of supervision and control to insure compliance with the requirements for insurance product suitability. The system must do the following:

Insurers must also have the capacity to monitor each insurance producer's life insurance policy and annuity contract replacements, and upon request, must have these records available to the Director

C. Federal Regulation

Privacy Protection (Gramm-Leach-Bliley)

The Gramm-Leach-Bliley Act stipulates that in general, an insurance company may not disclose nonpublic personal information to a nonaffiliated third party except for the following reasons:

Each violation of the above provisions is subject to fines of up to $16,000. On top of that is a penalty of $250 per each noncompliant e-mail, with a cap of $2 million dollars.

National Do Not Call List

In 2003, the Federal Trade Commission (FTC) and the Federal Communications Commission (FCC) worked together to create the National Do Not Call Registry, allowing consumers to include their telephone numbers on the list to which solicitation calls cannot be made by telemarketers. Insurance companies need to comply with this regulation when making solicitation phone calls.

To comply with the telemarketing sales rules, telemarketers must not do any of the following:

• Call any number on the National Do Not Call Registry or on that seller's Do Not Call list;
• Deny someone a right to be placed on any Do Not Call Registry;
• Call outside permissible calling hours (before 8 a.m. and after 9 p.m.);
• Abandon calls;
• Fail to transmit caller ID information;
• Threaten or intimidate a consumer or use obscene language; or
• Cause any telephone to ring or engage a person in conversation with the intent to annoy, abuse, or harass the person called.

Some exceptions to the Do Not Call Registry include the following calls:

• From or on behalf of organizations which have established a business relationship with the consumer (for the last 18 months from the date of a sale or transaction);
• For which the consumer has given prior written permission;
• Not commercial or that do not include unsolicited advertisements; and
• By or on behalf of tax-exempt nonprofit organizations.

To keep in compliance with the Do Not Call rules, organizations must consult the registry every 31 days. Any phone numbers on the registry must be dropped from the organization's call lists.

Exam Breakdowns – revised exam breakdowns

Oregon Property Insurance Examination

100 Questions

Oregon Casualty Insurance Examination

100 Questions

Oregon Property and Casualty Insurance Examination

150 Questions

Note that in your online course, Federal Laws and Regulations are part of the Insurance Regulation chapter.

Property and Casualty Insurance Basics

A. Principals and Concepts

5. Negligence

Torts

A tort is a wrongful act or the violation of someone's rights that leads to legal liability. Tortfeasor is a person who commits a tort. Torts are classified as intentional or unintentional (referred to as negligence).

An intentional tort is any deliberate act that causes harm to another person regardless of whether the offending party intended to injure the aggrieved party. For purpose of this definition, breach of contract is not considered an intentional tort.

An unintentional tort is the result of acting without proper care. This is generally referred to as negligence.

C. Common Policy Provisions

6. Other Insurance

Noncurrency

Nonconcurrency refers to other insurance written on the same risk, but not on the same coverage basis.

Pro Rata

Pro rata is a provision found in some property insurance policies that provides for the sharing of loss with other insurance that may be written on the same risk in the same proportion as their limits of insurance bear to the total of coverage of all policies covering the risk, whether collectible or not.

Contribution by Equal Shares

A loss is paid under contribution by equal shares when 2 or more insurers issue policies on the same loss at the same level. Each insurer (primary or excess) contributes an equal amount to the loss settlement until the loss is paid, or until each insurer has exhausted its limits of insurance, whichever comes first.

12. Insurer Provisions

Arbitration

Arbitration is a method of casualty claim settlement used when the insured and insurer cannot agree on how to settle a claim. The settlement is submitted to an arbitrator, or multiple arbitrators, whose decision may or may not be binding on both parties dependent on state law.

Homeowners Policy

H. Selected Endorsements

Ordinance or Law

The ordinance or law endorsement of a homeowners policy provides for losses for damage to covered property or the building containing covered property to be settled on the basis of any ordinance or law that regulates construction, repair, or demolition of this property. An additional premium will be charged for this endorsement.

Commercial Package Policy (CPP)

B. Commercial Property

4. Selected Endorsements

Earthquake

The Earthquake and Volcanic Eruption endorsement modifies commercial property policies and adds coverage for the perils of earthquake and volcanic eruption (eruption, explosion, or pouring forth of a volcano). The volcanic eruption coverage provided by the other cause of loss forms is limited to above ground type volcanic action, clearly excluding ground shock waves. All earthquake shocks or volcanic eruptions occurring within any 168-hour period are considered one earthquake or explosion.

The limit of insurance for earthquake/volcanic eruption is an annual aggregate limit, and is the most the insurer will pay for the total of all loss or damage in a 12-month period. Coinsurance condition within the policy cannot apply to the earthquake coverage.

C. Commercial Inland Marine

Ocean Marine vs. Inland Marine Coverage

Marine policies provide property-type coverage and are usually used for imports, exports, and instruments of transportation and communication, such as bridges, tunnels, or pipelines. There are two main branches of marine insurance: ocean marine and inland marine.

Ocean marine insurance is one of the oldest types of insurance in the world. Most insurers still use archaic terms, wording, and language a couple centuries old in their policy forms, so to have a valid ocean marine contract, the courts have required "utmost good faith." Ocean marine insurance provides coverage for property while in transit over water ("wet marine" coverage). There is no standard policy in Ocean Marine insurance.

The 4 major types of Ocean Marine policies are

1. Hull — for physical damage or loss of the ship itself;
2. Cargo — for what the ship is hauling;
3. Freight — for loss of revenue if the ship owner cannot deliver the cargo;
4. Protection and indemnity (P&I) — for liability.

As ocean marine insurance developed to cover property shipped over the ocean or internationally, inland marine insurance was developed to cover property shipped over land or inland waterways. Inland marine is considered more domestic in nature.

Inland marine (dry marine) coverage can be written on almost any type of property that is portable, and in transit over land or in the air ("dry marine" coverage).

While inland marine is part of Commercial Package Policy, ocean marine is not.

Other Coverages and Options

Mobile Home

The coverage structure of the Mobile Homeowners Policy follows the structure of the Homeowners policy:

• Coverage A — States the limit of liability for damage to the mobile home;
• Coverage B — Other covered structures;
• Coverage C — Personal property of the insured*
• Coverage D — Loss of use coverage;
• Coverage E — Personal Liability;
• Coverage F — Medical Payments to Others.

* Note: Unlike the HO forms, the Mobile Homeowners Policy provides 40% of Coverage A. Items included in the unit (at the time of sale) are classified as Coverage A property.

The mobile homeowners policy changes the language for the Additional Coverage Property Removed. The policy will pay up to $500 if the insured moves the mobile home to a safer area to protect it from loss by a covered peril. If the insured wishes to move the mobile home in a situation in which it is not threatened by an insured peril, they must contact the insurer and obtain, for additional premium, a Transportation/Permission to Move Endorsement. This endorsement adds the perils of collision, upset, and stranding and sinking to the perils insured against in the policy. Coverage under this endorsement applies for a period of 30 days anywhere in continental United States or Canada. The mobile homeowners policy endorsement deletes the additional coverage for Ordinance or Law.

Earthquake Insurance

An earthquake is defined as a trembling or shaking of the earth that is volcanic or seismic in origin, often resulting in severe damage. It is a peril excluded by most standard property forms. Coverage for the peril of earthquake may be added by endorsement to most property policies, or coverage may be written in a Difference in Conditions Policy.

Difference in conditions (DIC) is a property insurance policy written to supplement a named perils property policy. There is no standard DIC policy, and the policies are usually manuscripted and tailored to the specific needs of the insured. Not only do DIC policies differ from company to company, but the policies offered by individual insurers often differ from one insured to another.

Some common characteristics of a DIC policy are the following:

• Provides all-risk coverage;
• Excludes the named perils provided by the policy it supplements;
• Contains no coinsurance clause or pro rata sharing provision; and
• Is written with a high deductible ($10,000 or more).

These policies are often written to provide flood and earthquake coverage.

Auto Insurance

B. Commercial Auto

3. Selected Endorsements

Broad Form Products

The Broad Form Products Coverage endorsement changes the liability coverage on a form. It removes the defective products exclusion (makes it ineffective). Other than auto coverage in garage operations, coverage applies a $250 deductible to the per accident limit.

Employees as Insureds

The employees as insureds endorsement will provide the insured's employees additional protection while using a vehicle not owned, hired, or borrowed for the insured business, if, for example, an employee uses a personal vehicle to run an errand for the insured business owner. Employees are not covered under the commercial auto coverage part while using their own vehicles in the course of business due to one of the exceptions listed in the permission clause in the Who is an Insured section of the policy.

C. Laws

5. Credit History — addition to the existing text

An insurer is prohibited from cancelling or nonrenewing a personal auto policy that has been in effect for more than 60 days solely based on an insured's credit history or insurance score.

An insurer may decline coverage during the initial underwriting process, as long as the applicant's credit history is in combination with other underwriting factors and the insurer does not use the following when considering declination of coverage, insurance score calculation, or premium rates:

• The absence of credit history or inability to determine an applicant's credit history, unless it relates to risk for the insurer and the insurer treats the applicant as if they have a neutral credit score;
• Credit inquiries not initiated by the applicant, initiated by the applicant for personal purposes, or inquiries identified on an applicant's credit report relating to insurance coverage;
• Multiple inquiries from home mortgage companies that are made within 30 days one another;
• Multiple inquiries from auto lending companies that are made within 30 days one another;
• The applicant's total available line of credit; or
• Existing policies or marital status changes in relation to credit history.

  If an insurer uses an insured's credit history score at any time, the insured may request the insurer to rerate the auto policy in accordance with the initial underwriting factors, no more than once per year. The insurer must rerate the policy within 30 days of the request. If the request is received within 60 days of the renewal date and the improved rate is less than $10, the insurer may provide the insured with the difference.

  If an insurer uses disputed credit history, the insurer must rerate the policy retroactively from the effective date of the current policy term.

  6. Total Loss — addition to the existing text

  When adjusting or settling vehicle total losses, an insurer must provide the insured with one of the following options:

• Replacement Vehicle — The insurer may elect to offer a replacement vehicle that is comparable to the original vehicle. A comparable automobile includes those of the same or similar make, milage, and condition. The replacement vehicle must be made available for the purpose of the claimant's inspection at a licensed dealer within a reasonable distance of the claimant's residence. The insurer's offer and insured's acceptance or rejection must be documented in the claim file; or
• Cash Settlement — The insurer may elect to pay a cash settlement equal to the ACV of the motor vehicle, less any deductible provided in the policy. For the purposes of a cash settlement, the value of an automobile may be based on one of the following:
  • A computerized database that produces valid and fair market values for automobiles;
  • The actual cost to purchase a comparable vehicle; or
  • An alternative determination method, as long as the method is allowable under the policy and the claims file provides the particulars of the pre-loss condition of the automobile.

  In the event an insurer and insured or third-party claimant are unable to agree on the value of an insured auto, the insurer must pay the undisputed amount until the insured or third-party claimant:

• Agrees to transfer ownership of the automobile to the insurer; or
• Authorizes the insurer to move the automobile to a disclosed location for a salvage sale, after making it available for inspection for at least 14 calendar days.

  Workers Compensation

  Federal Employers Liability Act (FELA)

  The Federal Employer's Liability Act (FELA) is an employer's liability law rather than a workers compensation law. It predated workers compensation and makes an interstate railroad liable for bodily injury sustained by employees. Coverage for liability under FELA is covered under Section II of the workers compensation and employer's liability policy unless specifically excluded.

  Although most state workers compensation laws restrict recovery to economic losses only, the FELA typically allows railroad employees to recover the following types of damages:

• Lost earnings, past and future;
• Medical expenses if paid out of pocket by the injured employee;
• Payment for the employee's reduced ability to earn a wage because of the injuries suffered; and
• Compensation for pain and suffering.

All actions regarding FELA must commence within 3 years from the day the cause of action began.

U.S. Longshore and Harbor Workers Compensation Act

The Federal Employer's Persons (other than seamen) who are engaged in maritime employment are covered under a federal workers compensation statute, the U.S. Longshore and Harbor Workers Compensation Act (LHWCA). A worker is covered under the LHWCA only if he or she meets a situs and a status test. The injury must occur on the navigable waters or on an adjoining wharf, pier, dock, or similar facility used in the loading, unloading, building, or repairing vessels. In addition, the individual must have been engaged in maritime employment when injured. When coverage is required for LHWCA, it may be added to a workers compensation policy by endorsement.

The Longshore and Harbor Workers Compensation Act, and its extensions, provide medical benefits, compensation for lost wages, and rehabilitation services to employees who are injured during the course of employment, or contract an occupational disease related to employment. Survivor benefits also are provided if the work-related injury causes the employee's death.

The Jones Act

The Jones Act is a federal act that covers ships' crews with the same remedy available to railroad workers. Generally, anyone who spends more than 30% of his or her time on a vessel that is in navigation will qualify as a Jones Act seaman. Seamen may sue an employer for injuries sustained through the employer's fault or negligence. The act applies to navigable waters used for international or interstate commerce.

An employee that does not qualify as a Jones Act seaman (i.e. one who works as a contract employee who moves back and forth between multiple vessels not under common ownership) will generally be covered under longshore or maritime law, and not under the Jones Act.

Exam Breakdowns – revised exam breakdowns

Oregon Personal Lines Examination

100 Questions

Note that in your online course, Federal Laws and Regulations are part of the Insurance Regulation chapter.

Property and Casualty Insurance Basics

A. Principals and Concepts

5. Negligence

Torts

A tort is a wrongful act or the violation of someone's rights that leads to legal liability. Tortfeasor is a person who commits a tort. Torts are classified as intentional or unintentional (referred to as negligence).

An intentional tort is any deliberate act that causes harm to another person regardless of whether the offending party intended to injure the aggrieved party. For purpose of this definition, breach of contract is not considered an intentional tort.

An unintentional tort is the result of acting without proper care. This is generally referred to as negligence.

C. Common Policy Provisions

6. Other Insurance

Noncurrency

Nonconcurrency refers to other insurance written on the same risk, but not on the same coverage basis.

Pro Rata

Pro rata is a provision found in some property insurance policies that provides for the sharing of loss with other insurance that may be written on the same risk in the same proportion as their limits of insurance bear to the total of coverage of all policies covering the risk, whether collectible or not.

Contribution by Equal Shares

A loss is paid under contribution by equal shares when 2 or more insurers issue policies on the same loss at the same level. Each insurer (primary or excess) contributes an equal amount to the loss settlement until the loss is paid, or until each insurer has exhausted its limits of insurance, whichever comes first.

12. Insurer Provisions

Arbitration

Arbitration is a method of casualty claim settlement used when the insured and insurer cannot agree on how to settle a claim. The settlement is submitted to an arbitrator, or multiple arbitrators, whose decision may or may not be binding on both parties dependent on state law.

Homeowners Policy

H. Selected Endorsements

Ordinance or Law

The ordinance or law endorsement of a homeowners policy provides for losses for damage to covered property or the building containing covered property to be settled on the basis of any ordinance or law that regulates construction, repair, or demolition of this property. An additional premium will be charged for this endorsement.

Auto Insurance

B. Laws

5. Credit History — addition to the existing text

An insurer is prohibited from cancelling or nonrenewing a personal auto policy that has been in effect for more than 60 days solely based on an insured's credit history or insurance score.

An insurer may decline coverage during the initial underwriting process, as long as the applicant's credit history is in combination with other underwriting factors and the insurer does not use the following when considering declination of coverage, insurance score calculation, or premium rates:

• The absence of credit history or inability to determine an applicant's credit history, unless it relates to risk for the insurer and the insurer treats the applicant as if they have a neutral credit score;
• Credit inquiries not initiated by the applicant, initiated by the applicant for personal purposes, or inquiries identified on an applicant's credit report relating to insurance coverage;
• Multiple inquiries from home mortgage companies that are made within 30 days one another;