What's happening
This bill requires auto insurers to verify the driving history of all applicants and listed drivers using a reliable third-party database before binding policies or accepting payments.
Why it matters
Reduces risk of premium fraud or misrepresentation. by requiring insurers to confirm the driving records of all applicants and any drivers listed, making it harder to hide violations or accidents that could affect insurance rates.
Could lead to more accurate pricing of auto insurance policies. , since premiums would be based on verified, up-to-date driving histories rather than self-reported or outdated information.
May introduce new administrative costs or delays for insurers and applicants. , as companies must integrate reliable third-party database checks into their application and payment processes before issuing policies.
Potentially increases consumer trust and fairness. by ensuring all applicants are evaluated using the same verified standards, reducing the chances that some pay less by omitting risky drivers from applications.
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
Verify Driving Records for Insurance
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to insurance
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7987
IN SENATE
March 16, 2018
Introduced by Sen. SEWARD -- 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 using driving history as a rating or underwriting factor for private passenger motor vehicle insurance
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. Verification of driving history. No insurer who utilizes an applicant's driving history as a rating or underwriting factor for private passenger motor vehicle insurance in the state shall bind a policy of insurance, or accept a down payment for a policy, without first verifying said applicant's driving history, as well as the driving history of all named-drivers listed by the applicant on the private passenger motor vehicle insurance application, through the use of a reliable third party database.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law and shall apply to policies issued, renewed or modified on or after such date. Effective immediately, any actions necessary to implement the provisions of this act on its effective date are authorized and directed to be completed on or before such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14892-01-8
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 using driving history as a rating or underwriting factor for private passenger motor vehicle insurance
Purpose
This bill would require verification of driving history when used as a rating or underwriting factor for private passenger motor vehicle insur- ance.
Summary of provisions
Section one amends the insurance law to add a new section 2616 regarding verification of driving history. The section establishes that no insurer who utilizes an applicant's driving history as a rating or underwriting factor for private passenger motor vehicle insurance in the state shall bind a policy of insurance, or accept a down payment for a policy, with- out first verifying said applicant's driving history, as well as the driving history of all named-drivers listed by the applicant on the private passenger motor vehicle insurance application, through the use of a reliable third party database.
Section two establishes the effective date.
Justification
There is currently a practice in the insurance community of certain carriers of personal automobile policies binding coverage based on an initial quote and questionnaire with the insured, and then raising the premium following a check of the insureds driving history. Responsible insurance agents and companies utilize all available underwriting resources prior to binding a policy for an insured. The practice of intentionally disregarding driver history information in order to pres- ent a false price to an insurance consumer undermines the credibility of the insurance industry as a whole. Consumers should be able to rely on the quotes for insurance policies to be fair and accurate so they can determine whether the coverage is affordable. This practice detracts from that ability and leaves the consumers bound to policies that are much more expensive than originally represented and in some cases, unaf- fordable. Requiring all carriers to run motor vehicle reports prior to binding coverage would guarantee the consumer will receive a fair and accurate quote prior to committing to the expense.
Legislative history
New Bill.
Fiscal implications
None.
Effective date
This act shall take effect on the ninetieth day after it shall have become a law and shall apply to policies issued, renewed or modified on or after such date. Effective immediately, any actions necessary to implement the provisions of this act on its effective date are author- ized and directed to be completed on or before such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.