Senate Bill S5342

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5342
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 20, 2025
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to the use of  telematics
   systems by insurers
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The insurance law is amended by adding a new  section  2354
 to read as follows:
   §  2354.  USE OF TELEMATICS. (A) AS USED IN THIS SECTION, "TELEMATICS"
 OR "USAGE-BASED INSURANCE" MEANS UTILIZING DATA  COLLECTED  RELATING  TO
 ANY  OF  THE  FOLLOWING  REGARDING  A  VEHICLE  OR  DRIVER USING VEHICLE
 SYSTEMS, RECORDING SENSORS, OR A TELECOMMUNICATIONS DEVICE FOR INSURANCE
 OPERATIONS  INCLUDING  PRICING,  UNDERWRITING,  CLAIMS,   AND   CUSTOMER
 SERVICE:
   (1) VEHICLE SPEED, LOCATION, MILEAGE, AND OPERATING HOURS;
   (2) DRIVER ACCELERATION, BRAKING, AND CORNERING HABITS;
   (3)  TELEPHONE  SCREEN TOUCH-ENGAGEMENT, INCLUDING BUT NOT LIMITED TO,
 HANDHELD PHONE CALL AND TEXT USAGE DURING VEHICLE OPERATION;
   (4) ROAD AND WEATHER CONDITIONS;
   (5) ENGINE DIAGNOSTICS;
   (6) ADVANCED DRIVER ASSISTANCE  SYSTEMS  (ADAS),  INCLUDING  MOTORIZED
 SEAT BELTS; AND
   (7)  ANY  OTHER  DATA  POINT  RELATED  TO THE USE AND OPERATION OF THE
 INSURED VEHICLE THAT HAS BEEN FILED WITH AND APPROVED BY THE SUPERINTEN-
 DENT.
   (B) AN INSURER THAT ISSUES, SELLS, OR DELIVERS  PRIVATE  PASSENGER  OR
 COMMERCIAL  AUTOMOBILE  INSURANCE OR POLICIES IN THE STATE MAY, WITH THE
 CONSENT OF THE PARTICIPATING DRIVER, OR THE NAMED INSURED IF THE PARTIC-
 IPATING DRIVER IS A MINOR, COLLECT TELEMATICS DATA:
   (1) FOR ESTABLISHING AN INSURANCE PREMIUM FOR THE POLICY THAT  INSURES
 THAT VEHICLE AND/OR OPERATOR;
   (2) FOR CLAIMS SETTLEMENT PURPOSES, INCLUDING INVESTIGATION OF FRAUD;
   (3) FOR RATE FILING PURPOSES USING AGGREGATED TELEMATICS DATA; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD04346-01-5
 S. 5342                             2
 
   (4) FOR OTHER CUSTOMER SERVICE PURPOSES, INCLUDING BUT NOT LIMITED TO:
 SAFETY,  INCLUDING  CRASH  DETECTION;  RISK MITIGATION, INCLUDING SEVERE
 WEATHER WARNINGS; ADDITIONAL INSURANCE PROTECTION; AND CONVENIENCE.
   (C)  WITH  RESPECT  TO  PRIVATE  PASSENGER  MOTOR VEHICLE INSURANCE AN
 INSURER SHALL NOT REQUIRE AN APPLICANT OR A POLICYHOLDER TO  PARTICIPATE
 IN  A  PROGRAM  THAT  MEASURES  THE OPERATION OF AN INSURED VEHICLE AS A
 CONDITION FOR PRICING OR UNDERWRITING A PRIVATE PASSENGER MOTOR  VEHICLE
 INSURANCE RISK UNLESS THE INSURER:
   (1)  ONLY  OFFERS  PRIVATE  PASSENGER MOTOR VEHICLE INSURANCE PRODUCTS
 THAT REQUIRE INSUREDS TO PARTICIPATE IN  A  PROGRAM  THAT  MEASURES  THE
 OPERATION OF AN INSURED VEHICLE, AND DISCLOSES SUCH REQUIREMENT TO:
   (I) AN APPLICANT AT THE TIME OF APPLICATION; AND
   (II) A POLICYHOLDER AT THE TIME OF RENEWAL; AND
   (2) INCLUDES THE INFORMATION REQUIRED TO BE DISCLOSED IN PARAGRAPH ONE
 OF  THIS  SUBSECTION  IN  ANY  ADVERTISING  MATERIALS  FOR THE INSURANCE
 PRODUCTS OFFERED BY THE INSURER.
   (D) (1) THIS SECTION SHALL NOT APPLY TO A PREMIUM INCREASE FOR A DRIV-
 ER OR VEHICLE DUE TO A TELEMATICS PROGRAM THAT MEASURES DRIVING BEHAVIOR
 DURING THE CURRENT POLICY PERIOD.
   (2) NOTICE TO A PARTICIPATING DRIVER, OR NAMED INSURED IF THE  PARTIC-
 IPATING  DRIVER IS A MINOR, OF A PREMIUM INCREASE RESULTING FROM THE USE
 OF TELEMATICS DATA SHALL BE MADE PURSUANT TO REGULATIONS PROMULGATED  BY
 THE SUPERINTENDENT IN ACCORDANCE WITH 15 U.S.C. § 1681M.
   (E)  ANY  PREMIUM  INCREASE  ESTABLISHED PURSUANT TO SUBSECTION (D) OF
 THIS SECTION SHALL BE MADE PURSUANT TO THE PROVISIONS OF SUBSECTION  (B)
 OF SECTION TWO THOUSAND THREE HUNDRED FIVE OF THIS CHAPTER.
   (F) AN INSURER MAY SHARE DATA OBTAINED THROUGH TELEMATICS:
   (1) WITH THE NAMED INSURED;
   (2) WITH A PERSON, NATURAL OR LEGAL, OTHER THAN THE NAMED INSURED ONLY
 IF THE NAMED INSURED PROVIDES CONSENT; OR
   (3) IN ACCORDANCE WITH A COURT ORDER OR SUBPOENA.
   (G)  ANY  INSURER  THAT  OFFERS  THE  USE OF TELEMATICS OR USAGE-BASED
 INSURANCE, OR ANY SUCH PROGRAM THAT MEASURES THE OPERATION OF AN INSURED
 VEHICLE DURING THE CURRENT POLICY PERIOD, SHALL DO SO IN ACCORDANCE WITH
 THE PROVISIONS OF ARTICLE  TWENTY-SIX  OF  THIS  CHAPTER  APPLICABLE  TO
 PRIVATE PASSENGER AUTO INSURANCE.
   (H)  THE  SUPERINTENDENT SHALL HAVE THE POWER TO PROMULGATE, FROM TIME
 TO TIME, SUCH REGULATIONS, NOT INCONSISTENT WITH THE PROVISIONS OF  THIS
 CHAPTER,  AS  MAY  BE  APPROPRIATE  TO  CARRY OUT THE PROVISIONS OF THIS
 SECTION AND, INSOFAR AS APPLICABLE TO THIS SECTION, OTHER PROVISIONS  OF
 THIS CHAPTER.
   §  2.  Section  2324  of  the insurance law is amended by adding a new
 subsection (c-1) to read as follows:
   (C-1) THIS SECTION  SHALL  NOT  PROHIBIT  ANY  INSURER  FROM  OFFERING
 PARTICIPATION  IN  A LOSS PREVENTION PROGRAM THAT PROMOTES AND INCENTIV-
 IZES SAFE DRIVING BEHAVIOR, WITH REWARDS, INCLUDING THROUGH THE  USE  OF
 TELEMATICS  AS  DEFINED  UNDER SECTION TWO THOUSAND THREE HUNDRED FIFTY-
 FOUR OF THIS ARTICLE, SO  LONG  AS  PARTICIPATION  IN  SUCH  PROGRAM  IS
 OFFERED BOTH TO MEMBERS OF THE GENERAL PUBLIC AND TO THE INSURER'S POLI-
 CYHOLDERS.
   §  3.  This  act shall take effect on the ninetieth day after it shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made and completed
 on or before such effective date.