What's happening
This bill requires auto insurance premiums to be reduced for retired or disabled individuals, reflecting their lower risk of loss.
Why it matters
Recognizes reduced risk for retirees and disabled. The bill acknowledges that retired or disabled individuals—especially those not earning income—typically drive less, which statistically lowers their likelihood of filing auto insurance claims.
Defines who qualifies for reduced rates. The legislation clearly spells out who is considered “retired” (age 65+ and not working) and “disabled” (not working and certified by federal or state authorities), ensuring that only those truly at lower risk benefit from the premium reduction.
Adds administrative requirements for insurers. Insurance companies must adapt their policies and renewal processes to verify eligibility for these lower rates, potentially adding steps for both insurers and insureds but aiming for fairness in premium pricing.
May help low- and fixed-income individuals. By making car insurance more affordable for those living on retirement or disability benefits, the bill could reduce financial strain and help these groups maintain mobility and independence.
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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. 3431 A. 4951
2019-2020 Regular Sessions
SENATE - ASSEMBLY
February 6, 2019
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.
LBD03169-01-9
S. 3431 2 A. 4951
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 Super- intendent of Insurance that its premiums reflect reduced exposure.
Legislative history
2017-18 S.1621/A.977; 2015-16 S.325/A.94; 2013-14 S.1761/A.1223; S.803 2011-12; S2009-10 SA 187.
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.