Directs the superintendent of insurance to promulgate rules and regulations limiting the use of credit scores to determine automobile insurance premiums

BILL NUMBER:S1128

Title of bill

An act to direct the superintendent of insurance to promulgate rules and regulations relating to excluding the use of "credit scores" in determining auto insurance premiums

Purpose

Directs the superintendent of insurance to promulgate rules and regulations limiting the use of credit scores to determine auto insurance premiums.

Summary of provisions

The superintendent of insurance shall review the actual methods and formulas currently utilized to determine auto insurance premiums for NY Consumers. If the superintendent determines that such methods are currently utilized, he or she shall promulgate amended rules and regulations which do not include the use of "credit scoring" and regulation which prohibit the future use of credit scoring methods.

Justification

This bill allows the superintendent of insurance to promulgate rules and regulations excluding the use of credit scores, not allowing insurance companies to raise or lower premium rates based on credit score history.

Legislative history

This is a new bill.

Fiscal implications

None.

Effective date

This act shall take effect on the one hundredth twentieth day after it shall have become a law, provided, however, that effective immediately, the addition, amendment and/or repeal of any rules or regulations necessary for the implementation of the foregoing sections of this act on its effective date is authorized and directed to be made and completed on or before such effective date.