What's happening
This bill prohibits motor vehicle insurers in New York from using socioeconomic factors, like age, education, or credit score, to determine rates or coverage.
Why it matters
Could lower barriers for marginalized or lower-income New Yorkers. by preventing insurers from using credit scores, education level, or income to set higher premiums, making car insurance potentially more affordable and accessible.
Targets a wide range of personal information. beyond just credit scores, including age, marital status, occupation, and even "price elasticity of demand" (a measure of how likely someone is to shop around for cheaper rates), which could close loopholes insurers might use to justify discriminatory pricing.
Strengthens consumer protections and privacy. by prohibiting insurers from even adjusting their internal algorithms or actuarial tables based on these factors, limiting the use of big data to indirectly discriminate.
May shift how insurers assess risk and set prices. , possibly leading to premiums being based more strictly on driving record and accident history, rather than non-driving-related characteristics, which could change the overall distribution of insurance costs.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Ban Insurance Rate Discrimination
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to insurance
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Ban Socioeconomic Bias in Insurance
In Senate Committee · Insurance · Sponsor Kevin S. Parker
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2849
2017-2018 Regular Sessions
IN ASSEMBLY
January 23, 2017
Introduced by M. of A. PEOPLES-STOKES, CRESPO -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to prohibiting motor vehicle insurers from discriminating based on socioeconomic factors
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The insurance law is amended by adding a new section 2616 to read as follows:
§ 2616. Rating factors prohibited. (a) Any insurer or insurance company group doing business in the state as a motor vehicle insurer may not use classification plans, rules or rates, rating plans or modifications of any of the foregoing, based in whole or in part on the factors specified in this section. Any classification plans, rules or rates, rating plans or modifications issued by said insurer or insurance company group using the following factors in whole or in part shall be deemed to violate public policy and are subject to disapproval by the superintendent:
(1) age;
(2) marital status;
(3) sex;
(4) sexual orientation;
(5) educational background or education level attained;
(6) employment status or occupation;
(7) income level;
(8) consumer credit information or score;
(9) ownership or interest in real property;
(10) any indication of a consumer's price elasticity of demand; and
(11) any other characteristic indicating or tending to indicate the socioeconomic status of an individual.
(b) It shall further be unlawful to consider the factors specified in subdivision (a) of this section to:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05531-01-7
A. 2849 2
(1) adjust any algorithm or equation used to construct actuarial tables or otherwise determine the cost of coverage;
(2) make any distinction or discrimination between persons as to the premiums or rates charged for motor vehicle insurance policies or the terms of coverage or in any other manner whatsoever;
(3) demand or require a greater premium from any person than such insurer requires at that time from other individuals or entities in similar cases; or
(4) refuse to issue, renew, or sell a policy after appropriate application therefor.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.