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History
- Referred to insurance
- Referred to rules
Companion bill
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Permits insurers to provide certain loss prevention and risk management devices to insureds and prospective insureds
In Assembly Committee · Insurance · Sponsor J. Gary Pretlow
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S5890
Title of bill
An act to amend the insurance law, in relation to permitting insurers to provide certain loss prevention and risk management devices to insureds and prospective insureds
Summary of specific provisions
Section 1 of the bill amends the insurance law to allow auto insurance companies to provide certain loss prevention and risk management devices to their insureds and prospective insureds, and to offer certain incentives for participating in such programs.
Section 2 of the bill provides for an effective date.
Justification
This bill would allow insurance companies to offer incentives to both insureds and prospective insureds, for participating in certain loss prevention and risk management programs through the use of "telematics devices" to monitor the driving habits of those individuals participating in the rewards program. "Telematics" refers to the technology of sending, receiving, and storing information relating to remote objects, such as vehicles, via telecommunication devices. The term is often used to refer specifically to the use of the technology in connection with the provision of auto insurance
The bill would clarify that telematics rewards programs do not violate the "anti-rebate" provisions of Section 2324 of the New York State Insurance Law. Currently, it is estimated that the vast majority of the states allow for such telematics rewards programs and recognize that these programs do not in any way constitute an improper rebate under. their state's respective anti-rebate statutes. This bill would clarify this program in New York in a similar fashion. By being able to offer incentives for both insured and prospective insureds to participate in telematics and risk management programs, insurance companies can help drivers to improve their driving habits, thereby resulting in safer conditions on the state's roads and highways. Additionally, participation in this type of real-time data monitoring program would be completely voluntary and would have no effect on the existing rates of insured drivers, should they decide not to participate.
The auto insurance industry is revolutionizing as technology develops, and this legislation simply amends present law to recognize both the validity, desirability and legality of a program that simply could not have been anticipated when the anti-rebate sections of the Insurance Law were first adopted.
Prior legislative history
None, new bill.
Fiscal implications
None.
Effective date
The bill is effective immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.