A00843 Summary:

BILL NOA00843A
 
SAME ASNo Same As
 
SPONSORPeoples-Stokes
 
COSPNSRSteck, Mamdani, Wallace, Simon, Paulin, Kelles, Hyndman, Alvarez, Lunsford, Anderson, Seawright
 
MLTSPNSR
 
Add §2618, Ins L
 
Prohibits motor vehicle insurers from discrimination on the basis of socioeconomic factors in determining algorithms used to construct actuarial tables, coverage terms, premiums and/or rates.
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A00843 Actions:

BILL NOA00843A
 
01/11/2023referred to insurance
12/22/2023amend and recommit to insurance
12/22/2023print number 843a
01/03/2024referred to insurance
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A00843 Committee Votes:

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A00843 Floor Votes:

There are no votes for this bill in this legislative session.
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A00843 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A843A
 
SPONSOR: Peoples-Stokes
  TITLE OF BILL: An act to amend the insurance law, in relation to prohibiting motor vehicle insurers from discriminating based on socioeconomic factors   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to prohibit motor vehicle insurers from discrimination on the basis of socioeconomic factors in determining algorithms used to construct actuarial tables, coverage terms, premiums and or rates.   SUMMARY OF PROVISIONS: This bill will amend Insurance Law, adding a new § 2618, to prohibit the use of: (a) sex; (b) marital status; (c) sexual orientation; (d) age; (e) consumer credit information or credit score; (f) any measure of a consumer's price elasticity of demand; (g) employment status or occupa- tion; (h) income level; (i) educational background or education level attained; (j) ownership or interest in real property; (k) any other characteristic indicating or tending to indicate the socioeconomic status of an individual in any classification plans, rules or rates, rating plans, or Modifications issued by any insurer or insurance compa- ny group. Additionally, under this section, "sex" shall include gender identity or expression, and transgender status, as the term "gender identity or expression" is defined in section two hundred ninety-two of the Executive Law.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE): The amended version clarifies that the term "sex" shall include gender identity or expression, and transgender status, as defined in the Execu- tive Law.   JUSTIFICATION: In order to comply with New York State law a person operating a car must have limited liability auto insurance. Currently, auto insurers doing business may use any range of factors to determine premiums which leads to adverse treatment of low-to moderate-income drivers. In the State of New York, insurance companies are using factors other than a driver's experience and driving record to calculate a drivers' premium. Insurers use a wide range of socioeconomic and non-driving factors to determine a driver's premium. Insurers use credit scores, occupation, level of educational attainment, marital status, and homeownership in addition to already prohibited factors such as age and sex. Some insur- ance companies even use consumer data to determine whether a customer is likely to shop around, and then sets prices for its policies according- ly. Using socioeconomic and non-driving factors that are not inherently related to a person's ability to operate a car, safely, forces good drivers who are of lower socioeconomic status to pay more for our State's obligatory auto insurance. By using rating factors such as these, good drivers of lower socioeconomic status are not treated equal- ly in the auto insurance marketplace. The Western New York Law Center, among other state and national organ- izations, has conducted research looking into the impact of socioeconom- ic factors on auto insurance premiums for New York Drivers. The Western New York Law Center recently did a study that examined over 5,000 rate quotes for drivers in Western New York. They found that a woman with a lower socioeconomic status pays as much as 22 7.11% more for limited liability auto insurance than a driver with the same driving record and a high socioeconomic status. A man with a lower socioeconomic status is charged 174.26% more for limited liability auto insurance than a driver with the same driving record and a high socioeconomic status. Simply put, when all driving related factors are held constant, drivers with lower levels of education, occupational status, marital status, and renters all pay between 1.74 to 2.27 times as much for auto insurance as their higher status peers. It is time to stop allowing these rating practices which aid in perpet- uating the cycle of poverty.   PRIOR LEGISLATIVE HISTORY: A8606 of 2015/2016 A2849 of 2017/2018 A7040 of 2019/2020 A3082 of 2021/2022   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: IMMEDIATELY.
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A00843 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         843--A
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 11, 2023
                                       ___________
 
        Introduced  by  M. of A. PEOPLES-STOKES, STECK, MAMDANI, WALLACE, SIMON,
          PAULIN, KELLES, HYNDMAN, ALVAREZ,  LUNSFORD,  ANDERSON,  SEAWRIGHT  --
          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  prohibiting  motor
          vehicle insurers from discriminating based on socioeconomic factors
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The insurance law is amended by adding a new  section  2618
     2  to read as follows:
     3    § 2618. Rating factors prohibited. (a) Any insurer or insurance compa-
     4  ny  group doing business in the state as a motor vehicle insurer may not
     5  use classification plans, rules or rates, rating plans or  modifications
     6  of any of the foregoing, based in whole or in part on the factors speci-
     7  fied  in  this section. Any classification plans, rules or rates, rating
     8  plans or modifications issued by said insurer or insurance company group
     9  using the following factors in whole or  in  part  shall  be  deemed  to
    10  violate  public policy and are subject to disapproval by the superinten-
    11  dent:
    12    (1) age;
    13    (2) marital status;
    14    (3) sex;
    15    (4) sexual orientation;
    16    (5) educational background or education level attained;
    17    (6) employment status or occupation;
    18    (7) income level;
    19    (8) consumer credit information or score;
    20    (9) ownership or interest in real property;
    21    (10) any indication of a consumer's price elasticity of demand; and
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00061-02-3

        A. 843--A                           2
 
     1    (11) any other characteristic indicating or tending  to  indicate  the
     2  socioeconomic status of an individual.
     3    (b)  It shall further be unlawful to consider the factors specified in
     4  subdivision (a) of this section to:
     5    (1) adjust any algorithm  or  equation  used  to  construct  actuarial
     6  tables or otherwise determine the cost of coverage;
     7    (2)  make  any distinction or discrimination between persons as to the
     8  premiums or rates charged for motor vehicle insurance  policies  or  the
     9  terms of coverage or in any other manner whatsoever;
    10    (3)  demand  or  require  a  greater premium from any person than such
    11  insurer requires at that time from  other  individuals  or  entities  in
    12  similar cases; or
    13    (4)  refuse to issue, renew, or sell a policy after appropriate appli-
    14  cation therefor.
    15    (c) For the purposes of this section:
    16    (1) "sex" shall include gender identity or expression; and
    17    (2) "gender identity or expression" shall have  the  same  meaning  as
    18  defined in section two hundred ninety-two of the executive law.
    19    § 2. This act shall take effect immediately.
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A00843 LFIN:

 NO LFIN
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A00843 Chamber Video/Transcript:

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