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S5214Senate2017-2018 SessionSame asA3650

Stop Age-Based Insurance Hikes

Official title

“Prohibits insurer from increasing auto insurance premiums upon renewal for persons 60 years of age or over solely on the ground of insureds' age”

Sponsor Toby Ann StaviskySD-16Affects Finance
Status
In Senate Committee
Insurance
Impact
5/10
Moderate
Passage
0%

Bill progress

Step 2 of 7

In committee · Insurance

What's happening

This bill prohibits insurers from raising premiums or refusing to renew auto insurance solely due to policyholders being age 60 or older.

Why it matters

  1. Protects Older Drivers from Discrimination. The bill explicitly prevents insurance companies from using age (specifically 60 or older) as the sole reason to raise premiums or deny policy renewals, ensuring that older adults are not unfairly penalized simply because of their age.

  2. Financial Security for Seniors. By stopping age-based premium hikes, the bill helps safeguard the financial wellbeing of seniors, many of whom are on fixed incomes and could be disproportionately affected by sudden increases in auto insurance costs.

  3. Encourages Fairer, Risk-Based Pricing. Insurers will need to base pricing decisions on actual driving records or risk factors rather than age alone, promoting a more equitable system that rewards safe driving habits regardless of age.

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Who cares

Headline styles

Stop Age-Based Insurance Hikes

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Toby Ann Stavisky

Senator · Senate District 16

No co-sponsors yet.

History

  1. Referred to insurance
  2. 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.

A3650Assembly

Stop Age-Based Insurance Hikes

In Assembly Committee · Insurance · Sponsor William Colton

Impact 5 · Moderate0% to pass

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

5214

2017-2018 Regular Sessions

IN SENATE

March 16, 2017

Introduced by Sen. STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance

AN ACT to amend the insurance law, in relation to prohibiting the increase of premiums or failure to renew automobile insurance policies for persons 60 years of age or over

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Subsection (i) of section 3425 of the insurance law is amended to read as follows:

(i) (1) No insurer shall refuse to issue or renew a covered policy solely on the ground of the advanced age of the applicant or insured.

(2) With respect to automobile insurance policies, no insurer shall increase the premium billed to an insured who is sixty years of age or over for the renewal of an existing policy solely on the ground of the age of the insured.

§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to renewals of policies issued on and after such date.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD04982-01-7

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 prohibiting the increase of premiums or failure to renew automobile insurance policies for persons 60 years of age or over

Purpose or general idea of bill

To prohibit automobile insurance carriers from increasing insurance rates solely on the basis of age.

Summary of specific provisions

Section 1. Subsection (i) of § 3425 of the insurance law is amended. No insurer shall increase the premium billed to an insured who is sixty years of age or over for the renewal of an existing policy solely on the ground of the age of the insured.

Justification

The automobile insurance industry presently has in place a discriminatory grading system, whereby insurance rates may be raised simply because a policyholder has reached a specified birthday, which puts them in a more expensive rating.

It is a common practice among automobile insurance carriers to raise premiums on elderly customers when they reach their 75th, 80th, or other birthday. These customers experience rising insurance rates, yet they have not been involved in any accidents or violations of the Motor Vehicle and Traffic Law which would merit rate increases. After years of responsible driving and loyalty to their insurance company, senior citizens suddenly find their automobile insurance rates increased solely because they have gotten older. Senior citizens are normally known as responsible, cautious drivers who obey motor vehicle laws and operate their cars in a competent manner.

This industry-wide practice is discriminatory against the elderly, many of whom are on fixed incomes and may have difficulty finding the financial resources to pay for the ever increasing rates as they get older.

Prior legislative history

Introduced in previous legislative sessions.

Fiscal implications

None.

Effective date

The first of January next succeeding the date on which it shall have become law and shall apply to renewals of policies issued on and after such date.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.