senate Bill S4656

2021-2022 Legislative Session

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

download bill text pdf

Sponsored By

Current Bill Status - In Senate Committee Insurance Committee


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

Your Voice

do you support this bill?

Please enter your contact information

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

view actions (1)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Feb 08, 2021 referred to insurance

Co-Sponsors

S4656 (ACTIVE) - Details

See Assembly Version of this Bill:
A7218
Current Committee:
Senate Insurance
Law Section:
Insurance
Versions Introduced in Other Legislative Sessions:
2011-2012: S1128
2013-2014: S3207
2015-2016: S1587
2017-2018: S3470
2019-2020: S4534

S4656 (ACTIVE) - Summary

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

S4656 (ACTIVE) - Sponsor Memo

S4656 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4656
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 8, 2021
                                ___________
 
 Introduced  by  Sens. PARKER, ADDABBO -- read twice and ordered printed,
   and when printed to be committed 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.
   § 2. The superintendent of financial services shall review the actuar-
 ial methods and formulas currently utilized to determine auto  insurance
 premiums  for  New  York consumers. Such review shall include a determi-

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

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.