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A04668 Summary:

BILL NOA04668B
 
SAME ASSAME AS S05764-B
 
SPONSORWeprin
 
COSPNSR
 
MLTSPNSR
 
Add 2327, Ins L
 
Requires third party verification of driving history when used as a rating or underwriting factor for private passenger motor vehicle insurance.
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A04668 Actions:

BILL NOA04668B
 
02/22/2023referred to insurance
03/22/2023reported
03/23/2023advanced to third reading cal.88
03/27/2023passed assembly
03/27/2023delivered to senate
03/27/2023REFERRED TO INSURANCE
05/30/2023recalled from senate
05/30/2023RETURNED TO ASSEMBLY
05/30/2023vote reconsidered - restored to third reading
05/30/2023amended on third reading 4668a
06/05/2023amended on third reading 4668b
06/21/2023substituted by s5764b
 S05764 AMEND=B BRESLIN
 03/15/2023REFERRED TO INSURANCE
 04/19/2023AMEND AND RECOMMIT TO INSURANCE
 04/19/2023PRINT NUMBER 5764A
 05/22/20231ST REPORT CAL.1187
 05/23/20232ND REPORT CAL.
 05/24/2023ADVANCED TO THIRD READING
 06/05/2023AMENDED ON THIRD READING 5764B
 06/08/2023PASSED SENATE
 06/08/2023DELIVERED TO ASSEMBLY
 06/08/2023referred to insurance
 06/21/2023substituted for a4668b
 06/21/2023ordered to third reading cal.88
 06/21/2023passed assembly
 06/21/2023returned to senate
 12/12/2023DELIVERED TO GOVERNOR
 12/22/2023SIGNED CHAP.767
 12/22/2023APPROVAL MEMO.87
 03/15/2023REFERRED TO INSURANCE
 04/19/2023AMEND AND RECOMMIT TO INSURANCE
 04/19/2023PRINT NUMBER 5764A
 05/22/20231ST REPORT CAL.1187
 05/23/20232ND REPORT CAL.
 05/24/2023ADVANCED TO THIRD READING
 06/05/2023AMENDED ON THIRD READING 5764B
 06/08/2023PASSED SENATE
 06/08/2023DELIVERED TO ASSEMBLY
 06/08/2023referred to insurance
 06/21/2023substituted for a4668b
 06/21/2023ordered to third reading cal.88
 06/21/2023passed assembly
 06/21/2023returned to senate
 12/12/2023DELIVERED TO GOVERNOR
 12/22/2023SIGNED CHAP.767
 12/22/2023APPROVAL MEMO.87
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A04668 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A4668B
 
SPONSOR: Weprin
  TITLE OF BILL: An act to amend the insurance law, in relation to using driving history as a rating or underwriting factor for private passenger motor vehicle insurance   PURPOSE: This bill would require verification of driving history when used as a rating or underwriting factor for private passenger motor vehicle insur- ance.   SUMMARY OF PROVISIONS: Section one amends the insurance law to add a new section 2327 regarding verification of driving history. The section establishes that no insurer who utilizes an applicant's driving history as a rating or underwriting factor for private passenger motor vehicle insurance in the state shall bind a policy of insurance, or accept a down payment for a policy, with- out first making a good faith effort to verify said applicant's driving history, as well as the driving history of all named-drivers listed by the applicant on the private passenger motor vehicle insurance applica- tion, through the use of a third party database unless the driving history is unavailable. Section two establishes the effective date.   JUSTIFICATION: There is currently a practice in the insurance community of certain carriers of personal automobile policies binding coverage based on an initial quote and questionnaire with the insured, and then raising the premium following a check of the insureds driving history. Responsible insurance agents and companies utilize all available under- writing resources prior to binding a policy for an insured. The practice of intentionally disregarding driver hittory information in order to present a false price to an insurance consumer under mines the credibil- ity of the insurance industry as a whole. Consumers should be able to rely on the quotes for insurance policies to be fair and accurate so they can determine whether the coverage is affordable. This practice detracts from that ability and leaves the consumers bound to policies that are much more expensive than originally represented and in some cases, unaffordable. Requiring all carriers to run motor vehicle reports prior to binding coverage would guarantee the consumer will receive a fair and accurate quote prior to committing to the expense.   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect on the 180th day after it shall have become a law and shall apply to policies issued or renewed on or after such date. Effective immediately, any actions necessary to implement the provisions of this act on its effective date are authorized and directed to be completed on or before such date.
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A04668 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         4668--B
                                                                 Cal. No. 88
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 22, 2023
                                       ___________
 
        Introduced by M. of A. WEPRIN -- read once and referred to the Committee
          on  Insurance  --  advanced to a third reading, passed by Assembly and
          delivered to the Senate, recalled from the Senate, vote  reconsidered,
          bill  amended,  ordered reprinted, retaining its place on the order of
          third reading -- again amended on third  reading,  ordered  reprinted,
          retaining its place on the order of third reading
 
        AN  ACT to amend the insurance law, in relation to using driving history
          as a rating or underwriting factor for private passenger motor vehicle
          insurance
 
          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 2327
     2  to read as follows:
     3    § 2327. Verification of driving history. No insurer  who  utilizes  an
     4  applicant's  driving  history  as  a  rating  or underwriting factor for
     5  private passenger motor vehicle insurance in this  state  shall  bind  a
     6  policy  of  insurance,  or accept a percentage of the annual premium due
     7  for a policy, without first making a good faith effort  to  verify  said
     8  applicant's driving history, as well as the driving history of all named
     9  drivers that are used to rate the policy and are listed by the applicant
    10  on  the  private  passenger motor vehicle insurance application, through
    11  the use of a third-party database. An insurer also shall verify, through
    12  a third-party database, the driving history of a named  driver  used  to
    13  rate the policy when added during the policy period and shall verify the
    14  driving  history  of  all  drivers  used  to  rate  the policy at policy
    15  renewal, unless the driving history is unavailable at the  time  of  the
    16  initial  inquiry due to a temporary website outage, service interruption
    17  or other circumstances beyond the control of the  insurer,  producer  or
    18  third-party representative.
    19    § 2. This act shall take effect on the one hundred eightieth day after
    20  it shall have become a law and shall apply to policies issued or renewed
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09439-07-3

        A. 4668--B                          2
 
     1  on  or  after  such date. Effective immediately, the addition, amendment
     2  and/or repeal of any rule or regulation necessary for the implementation
     3  of this act on  its  effective  date  are  authorized  to  be  made  and
     4  completed on or before such effective date.
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A04668 Chamber Video/Transcript:

3-27-23Video (@ 00:54:11)Transcript pdf Transcript html
5-30-23Video (@ 03:39:33)Transcript pdf Transcript html
6-5-23Video (@ 05:06:31)Transcript pdf Transcript html
6-21-23Video (@ 00:05:29)Transcript pdf Transcript html
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