What's happening
This bill requires auto insurers to adjust premiums for retired or disabled drivers to reflect their reduced risk of loss.
Why it matters
Creates a legal obligation for insurance companies to lower premiums for retirees and disabled people. By specifying that insurers must reflect “reduced exposure to loss” for these groups, the bill targets the common situation where retirees and disabled individuals have less risk (e.g., less commuting) but may not currently receive fair premium adjustments.
Defines who counts as “retired” or “disabled” for this purpose. The bill precisely defines “retired” (over 65, not earning income) and “disabled” (not earning income and certified via SSDI, SSI, Railroad Retirement, or legal blindness), ensuring only those truly facing reduced work-related driving risk qualify.
Establishes proof and verification mechanisms. Insurers must accept official award letters or certificates as proof of disability and are allowed to use renewal questionnaires to confirm ongoing eligibility, balancing consumer ease with insurer fraud prevention.
May set a precedent for premium fairness and anti-discrimination. This bill could influence future insurance practices and other states by establishing that rates must directly correspond to actual risk, potentially leading to broader reforms in how insurers assess and price risk for different populations.
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Who cares
Retired drivers and their spouses
The bill would require reduced no-fault premiums reflecting reduced exposure to loss when the principal operator or spouse is at least 65 and does not engage in activities for income.
Drivers with disabilities and their spouses
Those who do not engage in activities for income and meet the bill’s disability criteria could qualify for a reduced no-fault premium based on the principal operator’s or spouse’s status.
Auto insurers
Insurers would have to adjust applicable premiums to reflect reduced exposure to loss and could use renewal questionnaires to determine continued eligibility.
Disability benefit recipients and legally blind people
Social Security or Railroad Retirement disability award letters, or a certificate from the state commission for the blind and visually handicapped, could serve as proof of disability.
Headline styles
Lower Car Insurance for Retirees
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
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.
Lower Car Insurance for Retirees
In Assembly Committee · Insurance · Sponsor Fred Thiele
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 1621 A. 977
2017-2018 Regular Sessions
SENATE - ASSEMBLY
January 10, 2017
IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance
IN ASSEMBLY -- Introduced by M. of A. THIELE, SIMOTAS -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to automobile insurance rates for persons who are retired or disabled
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 2330 of the insurance law is amended to read as follows:
§ 2330. No fault motor vehicle insurance rates; reflection of reduced exposure to loss. (a) Where the principal operator of a motor vehicle or such operator's spouse is eligible for medicare benefits for items of basic economic loss specified in paragraph one of subsection (a) of section five thousand one hundred two of this chapter, or where the insurer's obligation to pay first party benefits for loss of earnings from work is reduced by virtue of the provisions of such subsection, or by virtue of the principal operator or such operator's spouse being retired or disabled, the premium attributable to coverage under the automobile insurance policy for such items shall be appropriately modified to reflect the insurer's reduced exposure to loss.
(b) For purposes of this section, the term (1) "retired" shall mean a person who has attained age sixty-five years and is not engaged in any activities for income; and the term (2) "disabled" shall mean a person who is not engaged in any activities for income and who (A) is certified as disabled and eligible to receive social security disability insurance (SSDI) or supplemental security income (SSI) benefits under the federal Social Security Act, or (B) is certified as disabled and eligible to receive Railroad Retirement Disability benefits under the federal Railroad Retirement Act, or (C) has received a certificate from the state
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02104-01-7
S. 1621 2 A. 977
commission for the blind and visually handicapped stating that such person is legally blind.
An award letter from the Social Security Administration or the Railroad Retirement Board or a certificate from the state commission for the blind and visually handicapped may be submitted as proof of disability.
The insurer, at the time of renewal, may determine by the renewal questionnaire if the principal operator or such operator's spouse qualifies for a continuation of the modified premium.
§ 2. This act shall take effect on the one hundred eightieth day after it shall have become a law and shall apply to all policies issued, modified, amended, altered, or renewed on or after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to automobile insurance rates for persons who are retired or disabled
Purpose
Reduces a retired or disabled owner's no fault insurance premium by providing appropriate automobile insurance rates to reflect a reduced exposure to loss.
Summary of provisions
Section 2330 of insurance law is amended.
Justification
No-fault provides first party coverage when someone is injured as a result of a car accident. No-fault consists of health coverage, loss of earnings from work, and certain incidental expenses. Certain operators of motor vehicles either have no earnings from work or are covered for lost earnings from work by other first payer insurance policies. Thus, there is less exposure from the motorist's insurance company on the loss earnings component of no-fault insurance. However, many insurance companies do not adjust the premiums to take into account this reduced exposure to loss.
This bill requires that an insurance company demonstrate to the Superintendent of Insurance that its premiums reflect reduced exposure.
Legislative history
2015-16 S.325/A.94; 2013-14 S.1761/A.1223; S.803 2011-12; 2009-10 S.1187.
Fiscal implications
None to the state.
Effective date
This act shall take effect on the 180th day after it shall have become a law and shall apply to all policies issued, modified, altered, or renewed on or after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.