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.
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.
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