senate Bill S636

2013-2014 Legislative Session

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

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to insurance
Jan 09, 2013 referred to insurance

Co-Sponsors

S636 - Bill Details

See Assembly Version of this Bill:
A1531
Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §3425, Ins L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S1211, A992
2009-2010: S1754, A1265

S636 - Bill Texts

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Prohibits insurer from increasing auto insurance premiums upon renewal for persons 60 years of age or over based solely on the ground of the insured's age.

view sponsor memo
BILL NUMBER:S636

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:
Amends subsection (i) of § 3425 of the insurance law 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.

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.

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

                                   636

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

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 ASSEM-
BLY, 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.
  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
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.
                                                           LBD03563-01-3

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