S T A T E O F N E W Y O R K
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10524--A
I N A S S E M B L Y
March 6, 2026
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Introduced by M. of A. LUNSFORD, STECK, GLICK -- 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 amend the insurance law, in relation to motor vehicle insur-
ance fairness; and to repeal section 2331 of the insurance law relat-
ing to motor vehicle insurance rates based on age, sex or marital
status
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 2331 of the insurance law is REPEALED and a new
section 2331 is added to read as follows:
§ 2331. MOTOR VEHICLE INSURANCE FAIRNESS. (A) DEFINITION. FOR PURPOSES
OF THIS SECTION, THE TERM "PROCEEDING" SHALL MEAN THE FILING OF ANY
RATE, RATING PLAN, RATING RULE OR RATING MANUAL AND ANY RULEMAKING
CONDUCTED PURSUANT TO THIS SECTION.
(B) PROHIBITIONS; REFUSAL TO INSURE. (1) NO INSURER SHALL REFUSE TO
ISSUE OR RENEW A POLICY OR CONTRACT OF MOTOR VEHICLE INSURANCE BASED IN
WHOLE OR IN PART ON ANY OF THE PROHIBITED UNDERWRITING AND RATING
FACTORS SET FORTH IN SUBSECTION (C) OF THIS SECTION, OR USE SUCH FACTORS
TO DETERMINE THE TERMS OF COVERAGE OR PLACEMENT IN A PARTICULAR AFFIL-
IATE WITHIN AN INSURANCE COMPANY GROUP.
(2) ANY SCHEDULE OF RATES, RATING PLAN, RATING RULE, RATING MANUAL OR
ANY OTHER METHOD OF ESTABLISHING THE PREMIUM TO BE PAID BY A MOTOR VEHI-
CLE INSURANCE POLICYHOLDER OR COVERED DRIVER, AND THE MODIFICATION THER-
EOF, BASED IN WHOLE OR IN PART ON ANY OF THE PROHIBITED UNDERWRITING AND
RATING FACTORS SET FORTH IN SUBSECTION (C) OF THIS SECTION SHALL BE
DEEMED UNFAIRLY DISCRIMINATORY.
(C) PROHIBITED FACTORS. NO FILING OF A RATE, RATING PLAN, RATING RULE
OR RATE MANUAL APPLICABLE TO MOTOR VEHICLE INSURANCE SHALL BE APPROVED
BY THE SUPERINTENDENT IF THE FILING IS BASED, IN WHOLE OR IN PART, ON
THE FOLLOWING FACTORS:
(1) ANY CRITERIA PROTECTED UNDER SECTION TWO HUNDRED NINETY-SIX OF THE
EXECUTIVE LAW;
(2) AGE, EXCEPT AS PROVIDED FOR UNDER SUBSECTION (D) OF THIS SECTION;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14984-03-6
A. 10524--A 2
(3) EMPLOYMENT OR OCCUPATION, EXCEPT AS IT PERTAINS TO WHETHER A VEHI-
CLE IS BEING USED FOR A BUSINESS PURPOSE AND THE NATURE OF SUCH USE;
(4) EDUCATION LEVEL ATTAINED;
(5) HOME OWNERSHIP OR PROPERTY VALUE;
(6) CONSUMER CREDIT INFORMATION OR ANY OTHER CREDIT-BASED SCORE;
(7) THE ABSENCE OF PRIOR INSURANCE;
(8) THE AMOUNT OR PROVIDER OF PRIOR INSURANCE COVERAGE;
(9) ANY MEASURE OF A CONSUMER'S PRICE ELASTICITY OF DEMAND;
(10) THE ZIP CODE, OR ANY TERRITORIAL DESIGNATION GEOGRAPHICALLY SMAL-
LER THAN A ZIP CODE, IN WHICH THE POLICYHOLDER RESIDES, EXCEPT AS IT
PERTAINS TO THE RATE OF AUTO-RELATED CRIMES, SUCH AS THEFT AND VANDAL-
ISM, OR ACCIDENT RATES IN SUCH ZIP CODE OR TERRITORIAL DESIGNATION;
(11) ANY DATA RELATED TO A CONSUMER USED TO JUSTIFY A RATE INCREASE
WHERE SUCH DATA IS MORE THAN TWO YEARS OLD; OR
(12) THE LEVEL OF INCOME OR WEALTH.
(D) YEARS OF DRIVING EXPERIENCE. NOTWITHSTANDING PARAGRAPH TWO OF
SUBSECTION (C) OF THIS SECTION, AN INSURER MAY CONSIDER THE NUMBER OF
YEARS OF DRIVING EXPERIENCE OF AN APPLICANT FOR THE PURPOSES OF UNDER-
WRITING AND RATING.
(E) TERRITORY OR ANY OTHER GEOGRAPHICAL CHARACTERISTIC. TERRITORY OR
ANY OTHER GEOGRAPHICAL CHARACTERISTIC SHALL NOT BE CONSIDERED FOR THE
PURPOSES OF UNDERWRITING A POLICY OR CONTRACT OF MOTOR VEHICLE INSUR-
ANCE, INCLUDING, BUT NOT LIMITED TO, ANY DECISION TO SELL, REFUSE TO
SELL, CANCEL, OR NON-RENEW. NOTWITHSTANDING PARAGRAPH TEN OF SUBSECTION
(C) OF THIS SECTION, AN INSURER MAY, FOR RATING PURPOSES, USE A TERRITO-
RIAL FACTOR THAT IS NOT OTHERWISE PROHIBITED UNDER THIS SECTION IF THE
TERRITORIAL FACTOR DOES NOT HAVE MORE THAN A TEN PERCENT IMPACT ON THE
PREMIUM THAT WOULD OTHERWISE BE CHARGED.
(F) PROHIBITED BUSINESS PRACTICES. EVERY INSURER ISSUING OR DELIVERING
A POLICY OR CONTRACT OF MOTOR VEHICLE INSURANCE IN THE STATE OF NEW YORK
SHALL DEMONSTRATE THAT ITS MARKETING, UNDERWRITING, RATING, CLAIMS
HANDLING, FRAUD INVESTIGATIONS, AND ANY ALGORITHM OR MODEL USED FOR
THOSE SUCH BUSINESS PRACTICES DO NOT DISPARATELY IMPACT ANY GROUP OF
CUSTOMERS BASED ON RACE, COLOR, NATIONAL OR ETHNIC ORIGIN, RELIGION,
SEX, SEXUAL ORIENTATION, DISABILITY, GENDER IDENTITY, OR GENDER
EXPRESSION.
(G) PRIOR APPROVAL OF RATES. (1) NO RATE SHALL BE APPROVED BY THE
SUPERINTENDENT OR REMAIN IN EFFECT THAT IS EXCESSIVE, INADEQUATE,
UNFAIRLY DISCRIMINATORY, OR OTHERWISE IN VIOLATION OF THIS SECTION. IN
CONSIDERING WHETHER A RATE IS EXCESSIVE, INADEQUATE, OR UNFAIRLY DISCRI-
MINATORY, NO CONSIDERATION SHALL BE GIVEN TO THE DEGREE OF COMPETITION,
AND THE SUPERINTENDENT SHALL CONSIDER WHETHER SUCH RATE MATHEMATICALLY
REFLECTS THE INSURANCE COMPANY'S INVESTMENT INCOME.
(2) EVERY INSURER ISSUING OR DELIVERING A POLICY OR CONTRACT OF MOTOR
VEHICLE INSURANCE THAT DESIRES TO CHANGE ANY RATE SHALL FILE A COMPLETE
RATE APPLICATION WITH THE SUPERINTENDENT. A COMPLETE RATE APPLICATION
SHALL INCLUDE ALL DATA NECESSARY TO JUSTIFY THE PROPOSED RATE AND SUCH
OTHER INFORMATION AS THE SUPERINTENDENT MAY REQUIRE. THE APPLICANT SHALL
HAVE THE BURDEN OF PROVING THAT THE REQUESTED RATE CHANGE IS JUSTIFIED
AND MEETS THE REQUIREMENTS OF THIS SECTION.
(3) THE SUPERINTENDENT SHALL NOTIFY THE PUBLIC OF ANY APPLICATION BY
AN INSURER FOR A RATE CHANGE. THE APPLICATION SHALL BE DEEMED APPROVED
SIXTY DAYS AFTER SUCH PUBLIC NOTICE UNLESS:
(I) THE SUPERINTENDENT DISAPPROVES OF THE APPLICATION;
(II) A CONSUMER OR SUCH CONSUMER'S REPRESENTATIVE REQUESTS A HEARING
WITHIN FORTY-FIVE DAYS AFTER SUCH PUBLIC NOTICE AND THE SUPERINTENDENT
A. 10524--A 3
GRANTS THE HEARING, OR THE SUPERINTENDENT DETERMINES NOT TO GRANT THE
HEARING AND ISSUES WRITTEN FINDINGS IN SUPPORT OF SUCH DECISION; OR
(III) THE SUPERINTENDENT, ON THE SUPERINTENDENT'S OWN MOTION, DETER-
MINES TO HOLD A HEARING. IF THE PROPOSED RATE ADJUSTMENT EXCEEDS FIVE
PERCENT OF THE THEN-APPLICABLE RATE FOR PERSONAL MOTOR VEHICLE INSURANCE
OR TEN PERCENT FOR COMMERCIAL MOTOR VEHICLE INSURANCE, THEN THE SUPER-
INTENDENT SHALL HOLD A HEARING UPON A TIMELY REQUEST. IF THE APPLICATION
IS INCOMPLETE OR OTHERWISE SUBJECT TO DISAPPROVAL, THEN THE SUPERINTEN-
DENT MAY EXTEND THE APPLICATION REVIEW PROCESS BY UP TO SIXTY DAYS WITH
THE AGREEMENT OF THE APPLICANT.
(H) RIGHT OF THE PUBLIC TO INSPECT RATES. ALL INFORMATION PROVIDED TO
THE SUPERINTENDENT PURSUANT TO THIS SECTION SHALL BE AVAILABLE FOR
PUBLIC INSPECTION ON THE DEPARTMENT'S WEBSITE, WITHOUT THE NEED TO PAY
FOR ACCESS OR LOGIN CREDENTIALS. THE DEPARTMENT SHALL ESTABLISH ON
THEIR WEBSITE A CENTRALIZED ONLINE DATABASE TO ALLOW MEMBERS OF THE
PUBLIC TO ACCESS AND VIEW ANY RATE INCREASE APPLICATIONS SUBMITTED BY
INSURERS. SUCH DATABASE SHALL INCLUDE, BUT NOT BE LIMITED TO, THE ABILI-
TY TO SEARCH FOR SPECIFIC INSURANCE COMPANY RATE APPLICATIONS, THE ABIL-
ITY TO VIEW PUBLIC COMMENTS, AND AN OPTION FOR INDIVIDUALS TO SUBMIT
THEIR OWN FEEDBACK.
(I) RIGHT OF THE PUBLIC TO REQUEST PERMISSION TO INTERVENE. ANY
PERSON MAY REQUEST PERMISSION FROM THE SUPERINTENDENT TO INTERVENE IN
ANY PROCEEDING PERMITTED OR ESTABLISHED PURSUANT TO THIS SECTION. THE
SUPERINTENDENT SHALL GRANT SUCH PERMISSION IF SUCH INTERVENTION IS LIKE-
LY TO CONTRIBUTE TO THE DEVELOPMENT OF A COMPLETE RECORD OR IS OTHERWISE
FAIR AND IN THE PUBLIC INTEREST.
(J) RULES. (1) THE DEPARTMENT SHALL, NO LATER THAN NINETY DAYS FROM
THE DATE THIS SECTION TAKES EFFECT, ADOPT RULES AND REGULATIONS THAT
GUIDE THE FILING AND APPROVAL OF RATES, RULES, AND FORMS PURSUANT TO
THIS SECTION. THE SUPERINTENDENT SHALL DEVELOP FORMULAS FOR EVALUATING
RATES AND ANY RULES OR FORMS THAT IMPACT RATES THAT WILL BE USED TO
DETERMINE WHETHER TO APPROVE OR DISAPPROVE ANY FILING.
(2) UNTIL THE RULES AND REGULATIONS DESCRIBED IN PARAGRAPH ONE OF THIS
SUBSECTION ARE IMPLEMENTED, NO INSURER MAY FILE FOR A CHANGE IN ANY
RATE, RULE, OR FORM THAT WOULD RESULT IN A RATE INCREASE. IF, BEFORE THE
ADOPTION OF THE RULES AND REGULATIONS DESCRIBED IN PARAGRAPH ONE OF THIS
SUBSECTION, AN INSURER ASSERTS THAT IT WOULD NOT BE ABLE TO EARN A
REASONABLE RATE OF RETURN WITHOUT AN INCREASE, THEN SUCH INSURER MAY
REQUEST A HEARING. IF IT IS DETERMINED AFTER A HEARING THAT A RATE
INCREASE IS NEEDED TO EARN A REASONABLE RATE OF RETURN, THEN THE INSURER
SHALL BE ALLOWED TO MAKE A CHANGE THAT AFFORDS IT THE MINIMUM INCREASE
REQUIRED TO EARN A REASONABLE RATE OF RETURN.
(3) THE DEPARTMENT SHALL, NO LATER THAN ONE HUNDRED EIGHTY DAYS FROM
THE EFFECTIVE DATE OF THIS SECTION, ADOPT RULES AND REGULATIONS THAT
IMPLEMENT THE TESTING OF INSURER BUSINESS PRACTICES FOR COMPLIANCE WITH
THIS SECTION.
(K) FEES. ALL INSURERS OF MOTOR VEHICLE INSURANCE SUBJECT TO THE
PROVISIONS OF THIS SECTION SHALL BE ASSESSED A FEE OF FIVE HUNDREDTHS OF
ONE PERCENT OF THEIR TOTAL EARNED PREMIUMS FROM THE PRIOR CALENDAR YEAR.
SUCH FEE SHALL BE PAYABLE TO THE DEPARTMENT NO LATER THAN JULY FIRST OF
EACH CALENDAR YEAR AND SHALL BE USED BY THE DEPARTMENT TO IMPLEMENT THE
PROVISIONS OF THIS SECTION.
§ 2. This act shall take effect on the ninetieth day after it shall
have become a law.