What's happening
This bill prohibits insurance companies from using a consumer's credit information as the only reason to increase premiums for new policies.
Why it matters
Limits potential discrimination. By preventing insurers from using only credit information to raise premiums, the bill may reduce unfair penalization of individuals with poor credit but otherwise low risk, addressing a common consumer rights concern.
Promotes broader risk assessment. Insurers will need to consider additional factors beyond credit history, which could lead to more accurate and individualized premium pricing.
Supports financial inclusion. Consumers with limited or challenged credit histories (such as young adults, recent immigrants, or those affected by medical debt) are less likely to face unjustified premium hikes when seeking new insurance coverage.
Encourages transparency. The change demands a clearer rationale for premium increases, making it easier for consumers to understand and potentially challenge decisions about their insurance rates.
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Who cares
Headline styles
Stop Credit-Based Insurance Hikes
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to insurance
- Referred to insurance
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3897
2017-2018 Regular Sessions
IN ASSEMBLY
January 30, 2017
Introduced by M. of A. M. G. MILLER -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to prohibiting the use of credit information as the sole basis for charging an increased premium for a new policy
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 2802 of the insurance law is amended by adding a new subdivision (b-1) to read as follows:
(b-1) use credit information of a consumer as the sole basis for charging an increased premium for underwriting or rating a new policy;
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02741-01-7
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.