S T A T E O F N E W Y O R K
________________________________________________________________________
2881
2015-2016 Regular Sessions
I N A S S E M B L Y
January 20, 2015
___________
Introduced by M. of A. TITONE, ROBINSON, HOOPER -- Multi-Sponsored by --
M. of A. COLTON, LIFTON, MAGEE -- read once and referred to the
Committee on Insurance
AN ACT to direct the superintendent of financial services to promulgate
rules and regulations relating to excluding the use of "credit scores"
in determining 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 financial services to promulgate any rules and regulations necessary
to prohibit the use of this method of calculating risk in the formu-
lation of auto insurance premiums on policies held by residents of New
York.
S 2. The superintendent of financial services shall review the actuar-
ial methods and formulas currently utilized to determine auto insurance
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03695-01-5
A. 2881 2
premiums for New York consumers. Such review shall include a determi-
nation of whether or not the manner in which insurance premiums are
determined includes the use of "credit scores" or similar means of
utilizing consumer credit reports to determine a statistical correlation
between personal money management and insurance risk. If the superinten-
dent of financial services determines that such methods are utilized he
or she shall promulgate amended rules and regulations which do not
include the use of credit scoring methods. If the superintendent of
financial services determines that such methods are not utilized, he or
she shall promulgate rules and regulations which prohibit the future use
of credit scoring methods.
S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law, provided, however, that effective immediate-
ly, the addition, amendment and/or repeal of any rules or regulations
necessary for the implementation of the provisions of this act on its
effective date is authorized and directed to be made and completed on or
before such effective date.