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Assembly Bill A1538

2009-2010 Legislative Session

Directs the superintendent of insurance to promulgate rules and regulations limiting the use of credit scores to determine automobile insurance premiums

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Archive: Last Bill Status - Stricken

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Bill Amendments

2009-A1538 - Details

Law Section:
Insurance

2009-A1538 - Summary

Directs the superintendent of insurance to promulgate rules and regulations limiting the use of credit scores to determine automobile insurance premiums.

2009-A1538 - Bill Text download pdf 

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

                                  1538

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by M. of A. PERALTA -- read once and referred to the Commit-
  tee on Insurance

AN ACT to direct the superintendent of insurance to promulgate rules and
  regulations relating to excluding the use of "credit scores" in deter-
  mining auto insurance premiums

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

  Section 1. Legislative intent. The legislature finds that the practice
of using "credit scores" to determine auto insurance premiums can result
in  premium  fluctuations that are difficult for consumers to manage. In
addition, consumers may not be aware of changes in their  credit  rating
and  therefor would not have information they needed to exercise respon-
sible control over a factor which could affect their insurance rates.
  The  legislature further finds that a "credit score" comes from infor-
mation contained in consumer credit reports and is considered along with
other motor vehicle and driving records to compute insurance risk  at  a
particular  point  in time. Insurance scoring is predicated on a statis-
tical correlation between personal money management and insurance  risk.
Insurance  scoring  is one of many factors which can be used to evaluate
risks and assign rates.
  Accordingly, the legislature finds that, since  it  is  a  calculation
that  is  one of many used actuarial calculations it need not be a deci-
sive factor. It is the purpose of this act to direct the  superintendent
of  insurance  to  promulgate  any  rules  and  regulations necessary to
prohibit the use of this method of calculating risk in  the  formulation
of auto insurance premiums on policies held by citizens of New York.
  S  2. The superintendent of insurance shall review the actuarial meth-
ods and formulas currently utilized to determine auto insurance premiums
for New York consumers. Such review shall  include  a  determination  of
whether  or  not  the  manner in which insurance premiums are determined

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

2009-A1538A - Details

Law Section:
Insurance

2009-A1538A - Summary

Directs the superintendent of insurance to promulgate rules and regulations limiting the use of credit scores to determine automobile insurance premiums.

2009-A1538A - Sponsor Memo

2009-A1538A - Bill Text download pdf 

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

                                 1538--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  M.  of  A. PERALTA, PERRY, FIELDS, HYER-SPENCER, STIRPE,
  CLARK, DenDEKKER, ESPAILLAT -- Multi-Sponsored by -- M. of A.  ALFANO,
  CAMARA,  PHEFFER,  RAIA,  WEISENBERG  -- read once and referred to the
  Committee on Insurance -- committee discharged, bill amended,  ordered
  reprinted as amended and recommitted to said committee

AN ACT to direct the superintendent of insurance to promulgate rules and
  regulations relating to excluding the use of "credit scores" in deter-
  mining auto insurance premiums

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

  Section 1. Legislative intent. The legislature finds that the practice
of using "credit scores" to determine auto insurance premiums can result
in premium fluctuations that are difficult for consumers to  manage.  In
addition,  consumers  may not be aware of changes in their credit rating
and therefore would not have the information  they  needed  to  exercise
responsible  control  over  a  factor which could affect their insurance
rates.
  The  legislature further finds that a "credit score" comes from infor-
mation contained in consumer credit reports and is considered along with
other motor vehicle and driving records to compute insurance risk  at  a
particular  point  in time. Insurance scoring is predicated on a statis-
tical correlation between personal money management and insurance  risk.
Insurance  scoring  is one of many factors which can be used to evaluate
risks and assign rates.
  Accordingly, the legislature finds that, since  it  is  a  calculation
that  is  one of many used actuarial calculations it need not be a deci-
sive factor. It is the purpose of this act to direct the  superintendent
of  insurance  to  promulgate  any  rules  and  regulations necessary to
prohibit the use of this method of calculating risk in  the  formulation
of auto insurance premiums on policies held by residents of New York.

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

2009-A1538B (ACTIVE) - Details

Law Section:
Insurance

2009-A1538B (ACTIVE) - Summary

Directs the superintendent of insurance to promulgate rules and regulations limiting the use of credit scores to determine automobile insurance premiums.

2009-A1538B (ACTIVE) - Sponsor Memo

2009-A1538B (ACTIVE) - Bill Text download pdf 

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

                                 1538--B

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  M.  of  A. PERALTA, PERRY, FIELDS, HYER-SPENCER, STIRPE,
  CLARK, DenDEKKER, ESPAILLAT -- Multi-Sponsored by -- M. of A.  ALFANO,
  CAMARA,  PHEFFER,  RAIA,  WEISENBERG  -- read once and referred to the
  Committee on Insurance -- committee discharged, bill amended,  ordered
  reprinted  as amended and recommitted to said committee -- recommitted
  to the Committee on Insurance in accordance with Assembly Rule 3, sec.
  2 -- committee discharged, bill amended, ordered reprinted as  amended
  and recommitted to said committee

AN ACT to direct the superintendent of insurance to promulgate rules and
  regulations relating to excluding the use of "credit scores" in deter-
  mining auto insurance premiums

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

  Section 1. Legislative intent. The legislature finds that the practice
of using "credit scores" to determine auto insurance premiums can result
in premium fluctuations that are difficult for consumers to  manage.  In
addition,  consumers  may not be aware of changes in their credit rating
and therefore would not have the information  they  needed  to  exercise
responsible  control  over  a  factor which could affect their insurance
rates.
  The  legislature further finds that a "credit score" comes from infor-
mation contained in consumer credit reports and is considered along with
other motor vehicle and driving records to compute insurance risk  at  a
particular  point  in time. Insurance scoring is predicated on a statis-
tical correlation between personal money management and insurance  risk.
Insurance  scoring  is one of many factors which can be used to evaluate
risks and assign rates.
  Accordingly, the legislature finds that, since  it  is  a  calculation
that  is  one of many used actuarial calculations it need not be a deci-
sive factor. It is the purpose of this act to direct the  superintendent

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

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