POLICY RE-RATING BASED ON UPDATED CREDIT SCORE.

(a) An insurer that uses credit scoring in the underwriting or rating of insurance subject to this chapter shall:

(1) use a consumer's credit report issued not more than 90 days before the date the policy is first issued or renewed if the insurer uses the report information to take an action that results in an adverse effect with respect to the insured;

(2) review and update the credit report of an insured not less than every 36 months; and

(3) reassess the insured's policy rating and adjust premiums based on the updated credit score.

(b) On renewal of an insurance policy, the insurer:

(1) shall, on request of an insured or the insured's agent, re-underwrite and re-rate the policy based upon a current credit report or insurance score, not exceeding once each 12-month period; and

(2) may obtain an insured's credit score in accordance with the insurer's underwriting guidelines, regardless of whether the renewal occurs before the expiration of the 36-month period described by Subsection (a)(2).

(c) An insurer is not required to update an insured's credit score and policy rating under this section if:

(1) the insured is in the most favorably priced tier of the insurer within a group of affiliated insurers;

(2) credit scoring is not used in the underwriting or rating of the insurance policy; or

(3) the insured's insurance product or type of coverage does not rely on credit scoring as a factor.