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A02406 Summary:

BILL NOA02406
 
SAME ASNo Same As
 
SPONSORColton (MS)
 
COSPNSRMiller, McDonough
 
MLTSPNSRSimon
 
Amd §3425, Ins L
 
Prohibits insurer from increasing auto insurance premiums upon renewal for persons 60 years of age or over based solely on the ground of the insured's age.
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A02406 Actions:

BILL NOA02406
 
01/26/2023referred to insurance
01/03/2024referred to insurance
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A02406 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2406
 
SPONSOR: Colton (MS)
  TITLE OF BILL: An act to amend the insurance law, in relation to prohibiting the increase of premiums or failure to renew automobile insurance policies for persons 60 years of age or over   PURPOSE OR GENERAL IDEA: To prohibit automobile insurance carriers from increasing insurance rates solely on the basis of age.   SUMMARY OF PROVISIONS: Amends subsection (i) of § 3425 of the insurance law and adds a new (2). With respect to automobile insurance policies, no insurer shall increase the premium billed to an insured who is sixty years of age or over for the renewal of an existing policy solely on the ground of the age of the insured.   JUSTIFICATION: The automobile insurance industry presently has in place a discriminato- ry grading system, whereby insurance rates may be raised simply because a policyholder has reached a specified birthday, which puts them in a more expensive rating. It is a common practice among automobile insurance carriers to raise premiums on elderly customers when they reach their 75th, 80th, or other birthday. These customers experience rising insurance rates, yet they have not been involved in any accidents or violations of the Motor Vehi- cle and Traffic Law which would merit rate increases. After years of responsible driving and loyalty to their insurance company, senior citi- zens suddenly find their automobile insurance rates increased solely because they have gotten older. Senior citizens are normally known as responsible, cautious drivers who obey motor vehicle laws and operate their cars in a competent manner. This industry-wide practice is discriminatory against the elderly, many of whom are on fixed incomes and may have difficulty finding the finan- cial resources to pay for the ever increasing rates as they get older.   PRIOR LEGISLATIVE HISTORY: 2013-14: A.1531/Insurance; S.636/Insurance 2011-12: A.992/Insurance; S.1211/Insurance 2009-10: A.1265/Insurance; S.1754/Insurance 2008: A.2807/Insurance; S.2662/Insurance 2007: A.2807/Insurance; S.2662/Insurance 2006: A.3215/Insurance; S.1694/Insurance 2005: A.3215/Insurance; S.1694/Insurance 2004: referred to Insurance 2003: referred to Insurance 2002: referred to Insurance 2001: referred to Insurance 2000: referred to Insurance 1999: referred to Insurance 1998: referred to Insurance   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect on the first of January. next succeeding the date on which it shall have become law and shall apply to renewals of policies issued on and after such date.
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A02406 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2406
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 26, 2023
                                       ___________
 
        Introduced  by  M. of A. COLTON, MILLER, McDONOUGH -- Multi-Sponsored by
          -- M. of A.   SIMON -- read once and  referred  to  the  Committee  on
          Insurance
 
        AN  ACT  to  amend  the  insurance  law,  in relation to prohibiting the
          increase of premiums or failure to renew automobile insurance policies
          for persons 60 years of age or over

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Subsection  (i)  of  section 3425 of the insurance law is
     2  amended to read as follows:
     3    (i) (1) No insurer shall refuse to issue or  renew  a  covered  policy
     4  solely on the ground of the advanced age of the applicant or insured.
     5    (2)  With  respect  to automobile insurance policies, no insurer shall
     6  increase the premium billed to an insured who is sixty years of  age  or
     7  over  for  the renewal of an existing policy solely on the ground of the
     8  age of the insured.
     9    § 2. This act shall take effect on the first of January next  succeed-
    10  ing  the  date  on  which  it shall have become a law and shall apply to
    11  renewals of policies issued on and after such date.
 
 
 
 

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00900-01-3
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