|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Feb 08, 2021||referred to insurance|
senate Bill S4656
Current Bill Status - In Senate Committee Insurance Committee
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S4656 (ACTIVE) - Details
S4656 (ACTIVE) - Sponsor Memo
BILL NUMBER: S4656 SPONSOR: PARKER TITLE OF BILL: 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 PURPOSE: Directs the superintendent of insurance to promulgate rules and regu- lations limiting the use of credit scores to determine auto insurance premiums. SUMMARY OF PROVISIONS: The superintendent of insurance shall review the actual methods and formulas currently utilized to determine auto insurance premiums for NY Consumers. If the superintendent determines that such methods are currently utilized, he or she shall promulgate amended rules and regu-
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.
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