senate Bill S2001

Permits non-commercial private passenger car insurance to provide for an actuarially appropriate reduction in premium for cars with automotive monitoring devices

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 09 / Jan / 2013
    • REFERRED TO INSURANCE
  • 08 / Jan / 2014
    • REFERRED TO INSURANCE

Summary

Requires any schedule or rating plan for non-commercial private passenger automobile insurance to provide for an actuarially appropriate reduction in premium charges for bodily injury liability, property damage liability, personal injury protection, medical payments and collision coverage with respect to automobiles equipped with an automotive safety monitoring device for parental monitoring of drivers under the age of 22; establishes qualifications and standards for the approval, utilization and installation of such devices.

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Bill Details

See Assembly Version of this Bill:
A803
Versions:
S2001
Legislative Cycle:
2013-2014
Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd ยง2336, Ins L
Versions Introduced in 2011-2012 Legislative Cycle:
S6628, A9748

Sponsor Memo

BILL NUMBER:S2001

TITLE OF BILL:
An act
to amend the insurance law, in relation to providing premium reductions
for non-commercial motor vehicles equipped with automotive safety
monitoring
devices

PURPOSE:
To provide for an actuarially appropriate reduction in automobile
insurance rates for those vehicles that have installed an automotive
safety monitoring device. The intent of using such devices is to
provide parents and guardians of new drivers under the age of 22 with
the ability to monitor the driving habits of such young and
inexperienced drivers.

SUMMARY OF PROVISIONS:

Section 1: Amends Insurance Law section 2336 to provide for an
actuarially appropriate reduction in premiums for vehicles that are
equipped with automotive safety monitoring devices. Such devices
would he capable of alerting the parent or guardian if a minor child
who is operating a vehicle that the car is being driven in an unsafe
manner or outside of time or location curfew restrictions.

Such devices should help to monitor vehicular speed, location of the
vehicle, distance and direction traveled, acceleration and braking
patterns, the number of passengers in the vehicle and other safety
indicia that indicates that the car is being driven in a safe or
unsafe manner. The Superintendent of Financial Services, in
consultation with the Department of Motor Vehicles shall promulgate
standards for the approval, utilization and installation of such
safety devices.

EXISTING LAW:
Under current law, there is no statutorily approved program in New
York to reduce auto insurance rates for those persons that install
automotive safety monitoring devices to help monitor the driving
habits of new drivers. While some auto insurers are beginning to
offer programs to better monitor the driving habits of young drivers,
this bill put this program in statute to help promote this concept to
save the lives of our young drivers.

JUSTIFICATION:
Drivers under the age of 21 are almost five times more likely to be
involved in a fatal auto accident than persons between the ages of 30
and 69. In 2002, 41 percent of all teen deaths were caused by motor
vehicle accidents. That statistic far surpasses other causes of teen
deaths, i.e. 14% homicide, 11% suicide, 5% malignant tumors, and 3%
heart disease. In 2009, approximately 3,000 teen drivers between the

age of 15 and 19 died as the result of a motor vehicle accident.
Further, per mile driven, teen drivers were more than four times more
likely than older drivers to crash.

There are several reasons for the high teen death rate in automobiles.
Among the reasons are teen inexperience behind a wheel, higher levels
of alcohol consumption, the tendency for such drivers to be more
aggressive and reckless in traffic conditions, the non-use of seat
belts, and because teens tend to drive smaller cars that offer less
protection and which are more susceptible to rollovers. Automotive
safety monitoring devices such as CarChip, DriveSafe, Real-Time
Tracking, RS-1000 Teen Driving System, SmartDriver, and TravelEyes2
do exist. Further, these systems, and others have demonstrated their
effectiveness to enable parents and guardians of minor drivers to
monitor a youth's driving habits. Promoting the ability of parents to
know the driving habits of their children should have a cooling
effect on a
teen's desire to drive recklessly or to travel to destinations far
from home. This is because the above systems allow the parent to
communicate directly with their children about unsafe driving
practices near the time when such unsafe practices are occurring. In
addition, teens may have a heightened desire to drive safer if they
know that their parents or guardians are monitoring their driving
habits and take away driving privileges if curfews are not followed.

Instituting an actuarially appropriate rate reduction for those
insured that install proven safety monitoring systems could reduce
insurance rates for targeted populations by up to 25 percent. More
importantly, it could save lives. The cost for installing these
safety monitoring devices range from $160 up to $500, plus a
monthly service fee. Encouraging parents to install these devices is
a sound public policy to reduce teen deaths & injuries and the injury
or death of other drivers.

A few such driver safety monitoring programs have been operating in
New York, however, there is no statutory program to authorize their
use. By enacting this law, it is hoped that more auto insurers will
make such programs available to New York parents and guardians.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: The first of January next succeeding
the date it becomes law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2001

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. CARLUCCI -- 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  providing  premium
  reductions  for non-commercial motor vehicles equipped with automotive
  safety monitoring devices

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  2336 of the insurance law is amended by adding a
new subsection (i) to read as follows:
  (I) ANY SCHEDULE OR RATING PLAN FOR NON-COMMERCIAL  PRIVATE  PASSENGER
AUTOMOBILE  INSURANCE  MAY  ALSO  PROVIDE FOR AN ACTUARIALLY APPROPRIATE
REDUCTION IN PREMIUM  CHARGES  FOR  BODILY  INJURY  LIABILITY,  PROPERTY
DAMAGE  LIABILITY,  PERSONAL  INJURY  PROTECTION,  MEDICAL  PAYMENTS AND
COLLISION COVERAGE WITH RESPECT TO AUTOMOBILES EQUIPPED WITH AN  AUTOMO-
TIVE SAFETY MONITORING DEVICE.
  (1) FOR THE PURPOSES OF THIS SUBSECTION:
  (A)  (I)  "AUTOMOTIVE  SAFETY MONITORING DEVICE" SHALL MEAN A TRACKING
DEVICE, GLOBAL POSITIONING SYSTEM RECEIVER OR EVENT DATA  RECORDER  THAT
IS  INSTALLED  ON  AN AUTOMOBILE THAT ALLOWS A DRIVER OR A MINOR CHILD'S
PARENT OR GUARDIAN TO MONITOR VEHICLE  SPEED,  ACCELERATION  OR  BRAKING
PATTERNS,  DISTANCE  OR  DIRECTION TRAVELED, THE NUMBER OF PASSENGERS IN
SUCH AUTOMOBILE, WHETHER PASSENGERS ARE WEARING SEAT BELTS, THE LOCATION
OF THE AUTOMOBILE OR OTHER SAFETY INDICIA WHEN SUCH AUTOMOBILE IS  BEING
OPERATED BY AN AUTHORIZED MINOR OPERATOR.
  (II)  SUCH  DEVICE NEED NOT BE PERMANENTLY INSTALLED BUT MUST HAVE THE
CAPABILITY TO ACCURATELY MONITOR THE OPERATION OF THE VEHICLE AND NOTIFY
PARENTS OR GUARDIANS OF THE LOCATION OF SUCH  AUTOMOBILE  OR  OF  UNSAFE
VEHICULAR  MOVEMENTS  THAT ARE OCCURRING WHILE SUCH VEHICLE IS UNDER THE
CONTROL OF A MINOR VEHICLE OPERATOR.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03932-01-3

S. 2001                             2

  (III) SUCH DEVICE MAY INCLUDE A REMOVABLE DEVICE OR CHIP WHICH  INTER-
FACES  WITH  THE AUTOMOBILE'S ONBOARD DIAGNOSTIC SYSTEM PORT AND RECORDS
DATA FROM THE MANUFACTURER'S EVENT  DATA  RECORDER;  PROVIDED,  HOWEVER,
THAT SUCH DEVICE HAS THE CAPACITY TO ACCURATELY MONITOR THE OPERATION OF
THE AUTOMOBILE.
  (B)  "MINOR  CHILD"  SHALL  MEAN  A PERSON UNDER THE AGE OF TWENTY-TWO
YEARS WHO HOLDS A LICENSE TO OPERATE A MOTOR VEHICLE.
  (2) THE SUPERINTENDENT SHALL, IN CONSULTATION WITH THE COMMISSIONER OF
MOTOR VEHICLES, PROMULGATE RULES AND REGULATIONS TO ESTABLISH QUALIFICA-
TIONS AND STANDARDS FOR THE APPROVAL, UTILIZATION  AND  INSTALLATION  OF
AUTOMOTIVE SAFETY MONITORING DEVICES.
  (3)  NOTHING IN THIS SUBSECTION SHALL BE CONSTRUED TO PREVENT AN AUTO-
MOBILE INSURER FROM  PROVIDING  ACTUARIALLY  APPROPRIATE  REDUCTIONS  IN
PREMIUM  CHARGES FOR BODILY INJURY LIABILITY, PROPERTY DAMAGE LIABILITY,
PERSONAL INJURY PROTECTION, MEDICAL PAYMENTS AND COLLISION COVERAGE  FOR
COMMERCIAL  AUTOMOBILE  INSURANCE  POLICIES  TO  ANY OTHER INSURED WHOSE
AUTOMOBILE IS EQUIPPED WITH AUTOMOTIVE SAFETY MONITORING DEVICES.
  S 2. This act shall take effect on the first of January next  succeed-
ing  the date on which it shall have become a law and shall apply to all
policies issued, renewed, modified, altered or amended on or after  such
date;  provided  that  any  and  all rules and regulations and any other
measures necessary to implement any provision of this act on its  effec-
tive date may be promulgated and taken on or before such effective date.

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