Assembly Bill A6053

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6053
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 26, 2025
                                ___________
 
 Introduced  by  M.  of  A. HUNTER, RAGA -- read once and referred to the
   Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to prohibiting automobile
   insurers from refusing to issue or renew an individual's policy  based
   on such individual's credit history

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subsections (c), (d), (f) and (g) of section  2801  of  the
 insurance  law, as added by chapter 215 of the laws of 2004, are amended
 and a new subsection (j) is added to read as follows:
   (c) "Applicant" shall mean an individual who has applied to be covered
 by a personal lines insurance policy OR AUTOMOBILE INSURANCE POLICY with
 an insurer.
   (d) "Consumer" shall mean an insured whose credit information is  used
 or  whose insurance score is calculated in the underwriting or rating of
 a personal lines insurance policy OR AUTOMOBILE INSURANCE POLICY, or  an
 applicant for such a policy.
   (f)  "Credit  information"  shall  mean any credit-related information
 derived from a credit report,  found  on  a  credit  report  itself,  or
 provided  on  an  application for personal lines insurance OR AUTOMOBILE
 INSURANCE. Information that is not credit-related shall not  be  consid-
 ered  "credit  information",  regardless of whether it is contained in a
 credit report or in an application, or is used to calculate an insurance
 score.
   (g) "Credit report" shall mean any written, oral,  or  other  communi-
 cation  of  information  by  a  consumer  reporting  agency bearing on a
 consumer's credit worthiness, credit standing or credit  capacity  which
 is  used or expected to be used or collected in whole or in part for the
 purpose of serving as a factor to  determine  personal  lines  insurance
 premiums,  AUTOMOBILE  INSURANCE  PREMIUMS, eligibility for coverage, or
 tier placement.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08566-01-5
              

 A. 6053                             2
 
   (J) "AUTOMOBILE INSURANCE" SHALL MEAN A CONTRACT OF INSURANCE,  ISSUED
 OR  ISSUED  FOR DELIVERY IN THIS STATE, ON A RISK LOCATED OR RESIDENT IN
 THIS STATE, INSURING AGAINST LOSSES OR LIABILITIES ARISING  OUT  OF  THE
 OWNERSHIP,  OPERATION, OR USE OF A MOTOR VEHICLE, PREDOMINANTLY USED FOR
 NON-BUSINESS  PURPOSES, WHEN A NATURAL PERSON IS THE NAMED INSURED UNDER
 THE POLICY OF AUTOMOBILE INSURANCE; PROVIDED, HOWEVER, THAT THE  USE  OR
 OPERATION  OF  THE MOTOR VEHICLE BY A TRANSPORTATION NETWORK DRIVER AS A
 TNC VEHICLE IN ACCORDANCE WITH ARTICLE FORTY-FOUR-B OF THE  VEHICLE  AND
 TRAFFIC LAW SHALL NOT BE INCLUDED IN DETERMINING WHETHER THE MOTOR VEHI-
 CLE IS BEING USED PREDOMINANTLY FOR NON-BUSINESS PURPOSES.
   §  2.  The  insurance law is amended by adding a new section 2802-a to
 read as follows:
   § 2802-A. USE OF CREDIT INFORMATION; AUTOMOBILE INSURANCE. (A)  INSUR-
 ERS  SHALL  BE PROHIBITED FROM REFUSING TO ISSUE AN AUTOMOBILE INSURANCE
 POLICY TO ANY APPLICANT SOLELY ON THE BASIS OF SUCH  APPLICANT'S  CREDIT
 INFORMATION.
   (B)  INSURERS  SHALL  BE PROHIBITED FROM REFUSING TO RENEW AN EXISTING
 AUTOMOBILE INSURANCE POLICY SOLELY UPON THE BASIS OF THE NAMED INSURED'S
 CREDIT INFORMATION AND SHALL BE PROHIBITED FOR  THE  PURPOSE  OF  POLICY
 RENEWAL FROM REQUESTING SUCH NAMED INSURED'S CREDIT INFORMATION OR CRED-
 IT REPORT FROM A CONSUMER REPORTING AGENCY.
   § 3. This act shall take effect immediately.