Bill Text: NY S05764 | 2023-2024 | General Assembly | Amended

---

Bill Title: Requires third party verification of driving history when used as a rating or underwriting factor for private passenger motor vehicle insurance.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2023-12-22 - APPROVAL MEMO.87 [S05764 Detail]

Download: New_York-2023-S05764-Amended.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                         5764--B
            Cal. No. 1187

                               2023-2024 Regular Sessions

                    IN SENATE

                                     March 15, 2023
                                       ___________

        Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
          printed to be committed to the Committee  on  Insurance  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to  said  committee -- reported favorably from said committee, ordered
          to first and second report, ordered to a third  reading,  amended  and
          ordered reprinted, retaining its place in 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.
                                                                   LBD09439-06-3
        S. 5764--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.