Bill Text: NY S08018 | 2023-2024 | General Assembly | Introduced
Bill Title: Limits third party verification of an applicant's driving history when used as a rating or underwriting factor for private passenger motor vehicle insurance to such applicant's New York State driving history; limits application to policies issued on and after the effective date.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-02-07 - SUBSTITUTED BY A8500 [S08018 Detail]
Download: New_York-2023-S08018-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8018 IN SENATE January 5, 2024 ___________ Introduced by Sen. BRESLIN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the insurance law and a chapter of the laws of 2023 amending the insurance law relating to using driving history as a rating or underwriting factor for private passenger motor vehicle insurance, as proposed in legislative bills numbers S. 5764-B and A. 4668-B, in relation to using driving history as a rating or underwrit- ing 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. Section 2327 of the insurance law, as added by a chapter of 2 the laws of 2023 amending the insurance law relating to using driving 3 history as a rating or underwriting factor for private passenger motor 4 vehicle insurance, as proposed in legislative bills numbers S. 5764-B 5 and A. 4668-B, is amended to read as follows: 6 § 2327. Verification of driving history. No insurer who utilizes an 7 applicant's New York state driving history as a rating or underwriting 8 factor for private passenger motor vehicle insurance in this state shall 9 bind a policy of insurance, or [accept] process a percentage of the 10 annual premium due for a policy, without first making a good faith 11 effort to verify said applicant's New York state driving history, as 12 well as the New York state driving history of all named drivers that are 13 used to rate the policy and are listed by the applicant on the private 14 passenger motor vehicle insurance application, through the use of a 15 third-party database. An insurer also shall verify, through a third-par- 16 ty database, the New York state driving history of a named driver used 17 to rate the policy when added during the policy period [and shall verify18the driving history of all drivers used to rate the policy at policy19renewal], unless the New York state driving history is unavailable at 20 the time of the initial inquiry due to a temporary website outage, 21 service interruption or other circumstances beyond the control of the 22 insurer, producer or third-party representative. 23 § 2. Section 2 of a chapter of the laws of 2023 amending the insurance 24 law relating to using driving history as a rating or underwriting factor EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09439-08-4S. 8018 2 1 for private passenger motor vehicle insurance, as proposed in legisla- 2 tive bills numbers S. 5764-B and A. 4668-B, is amended to read as 3 follows: 4 § 2. This act shall take effect on the one hundred eightieth day after 5 it shall have become a law and shall apply to policies issued [or6renewed] on or after such date. Effective immediately, the addition, 7 amendment and/or repeal of any rule or regulation necessary for the 8 implementation of this act on its effective date are authorized to be 9 made and completed on or before such effective date. 10 § 3. This act shall take effect on the same date and in the same 11 manner as a chapter of the laws of 2023 amending the insurance law 12 relating to using driving history as a rating or underwriting factor for 13 private passenger motor vehicle insurance, as proposed in legislative 14 bills numbers S. 5764-B and A. 4668-B, takes effect.
