NY State Senate Bill 2015-S1663

Senate Bill S1663

2015-2016 Legislative Session

Permits non-commercial private passenger car insurance to provide for an actuarially appropriate reduction in premium for cars with automotive monitoring devices

download bill text pdf

Archive: Last Bill Status - In Senate Committee Insurance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to insurance
Jan 13, 2015	referred to insurance

2015-S1663 (ACTIVE) - Details

See Assembly Version of this Bill:: A3081
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §2336, Ins L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6628, A9748
2013-2014: S2001, A803
2017-2018: S392, A5435
2019-2020: S3483, A4209
2021-2022: S4775, A9251
2023-2024: A415

2015-S1663 (ACTIVE) - Summary

Requires any schedule or rating plan for non-commercial private passenger automobile insurance to provide for an actuarially appropriate reduction in premium charges for bodily injury liability, property damage liability, personal injury protection, medical payments and collision coverage with respect to automobiles equipped with an automotive safety monitoring device for parental monitoring of drivers under the age of 22; establishes qualifications and standards for the approval, utilization and installation of such devices.

2015-S1663 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S1663

TITLE OF BILL:  An act to amend the insurance law, in relation to
providing premium reductions for non-commercial motor vehicles
equipped with automotive safety monitoring devices

PURPOSE:  To provide for an actuarially appropriate reduction in
automobile insurance rates for those vehicles that have installed an
automotive safety monitoring device. The intent of using such devices
is to provide parents and guardians of new drivers under the age of 22
with the ability to monitor the driving habits of such young and
inexperienced drivers.

SUMMARY OF PROVISIONS:

Section 1. Adds a new subsection (i) to section 2336 of the insurance
law to provide for an actuarially appropriate reduction in premiums
for vehicles that are equipped with automotive safety monitoring
devices. Such devices shall be capable of alerting the parent or
guardian of a minor child who is operating a vehicle that the car is
being driven in an unsafe manner or outside of time or location curfew
restrictions. Such devices should help to monitor vehicular speed,
location, distance and direction traveled, acceleration and braking
patterns, the number of passengers in the vehicle and other safety
indicia that indicates whether the car is being driven in a safe or
unsafe manner. The Superintendent of Financial Services, in

consultation with the Department of Motor Vehicles, shall promulgate
standards for the approval, utilization and installation of such
safety devices.

Section 2. Effective date.

JUSTIFICATION:  Drivers under the age of 21 are almost five times more
likely to be involved in a fatal auto accident than drivers between
the ages of 30 and 69. In 2002, 41 percent of all teen deaths were
caused by motor vehicle accidents. That statistic far surpasses other
causes of teen deaths, i.e. homicide (14%), suicide (11%), malignant
tumors (5%), and heart disease (3%). In 2009, approximately 3,000 teen
drivers between the age of 15 and 19 died as a result of a motor
vehicle accident. Further, per mile driven, teen drivers were more
than four times more likely than older drivers to crash.

There are several reasons for the high teen death rate in automobiles.
Among the reasons are teen inexperience behind the wheel, higher
levels of alcohol consumption, the tendency for such drivers to be
more aggressive and reckless in traffic conditions, the non-use of
seat belts, and because teens tend to drive smaller cars that offer
less protection and which are more susceptible to rollovers.
Automotive safety monitoring devices - such as CarChip, DriveSafe,
Real-Time Tracking, RS-1000 Teen Driving System, SmartDriver, and
TravelEyes2 - do exist. Further, these systems, and others, have
demonstrated their effectiveness in enabling parents and guardians of
minor drivers to monitor a youth's driving habits. Promoting the
ability of parents to know the driving habits of their children should
have a cooling effect on a teen's desire to drive recklessly or to
travel to destinations far from home. This is because the above
systems allow the parent to communicate directly with their children


about unsafe driving practices near the time when such unsafe
practices are occurring. In addition, teens may have a heightened
desire to drive safer if they know that their parents or guardians are
monitoring their driving habits and could take away driving privileges
if curfews are not followed.

Instituting an actuarially appropriate rate reduction for those
insured that install proven safety monitoring systems could reduce
insurance rates for targeted populations by up to 25 percent. More
importantly, it could save lives. The cost for installing these safety
monitoring devices range from $160 up to $500, plus a monthly service
fee. Encouraging parents to install these devices is a sound public
policy to reduce teen deaths & injuries and the injury or death of
other drivers.

A few such driver safety monitoring programs have been operating in
New York, however, there is no statutory program to authorize their
use. By enacting this law, it is hoped that more auto insurers will
make such programs available to New York parents and guardians.

LEGISLATIVE HISTORY:  2013-14: S.2001/A.803 - Insurance
Committee/Insurance Committee 2012:    S.6628/A.9748 - Insurance
Committee/Insurance Committee

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE:  This act shall take effect on the first of January
next succeeding the date on which it shall have become a law and shall
apply to all policies issued, renewed, modified, altered or amended on
or after such date.

2015-S1663 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1663

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 13, 2015
                               ___________

Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance

AN ACT to amend the insurance law,  in  relation  to  providing  premium
  reductions  for non-commercial motor vehicles equipped with automotive
  safety monitoring devices

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  2336 of the insurance law is amended by adding a
new subsection (i) to read as follows:
  (I) ANY SCHEDULE OR RATING PLAN FOR NON-COMMERCIAL  PRIVATE  PASSENGER
AUTOMOBILE  INSURANCE  MAY  ALSO  PROVIDE FOR AN ACTUARIALLY APPROPRIATE
REDUCTION IN PREMIUM  CHARGES  FOR  BODILY  INJURY  LIABILITY,  PROPERTY
DAMAGE  LIABILITY,  PERSONAL  INJURY  PROTECTION,  MEDICAL  PAYMENTS AND
COLLISION COVERAGE WITH RESPECT TO AUTOMOBILES EQUIPPED WITH AN  AUTOMO-
TIVE SAFETY MONITORING DEVICE.
  (1) FOR THE PURPOSES OF THIS SUBSECTION:
  (A)  (I)  "AUTOMOTIVE  SAFETY MONITORING DEVICE" SHALL MEAN A TRACKING
DEVICE, GLOBAL POSITIONING SYSTEM RECEIVER OR EVENT DATA  RECORDER  THAT
IS  INSTALLED  ON  AN AUTOMOBILE THAT ALLOWS A DRIVER OR A MINOR CHILD'S
PARENT OR GUARDIAN TO MONITOR VEHICLE  SPEED,  ACCELERATION  OR  BRAKING
PATTERNS,  DISTANCE  OR  DIRECTION TRAVELED, THE NUMBER OF PASSENGERS IN
SUCH AUTOMOBILE, WHETHER PASSENGERS ARE WEARING SEAT BELTS, THE LOCATION
OF THE AUTOMOBILE OR OTHER SAFETY INDICIA WHEN SUCH AUTOMOBILE IS  BEING
OPERATED BY AN AUTHORIZED MINOR OPERATOR.
  (II)  SUCH  DEVICE NEED NOT BE PERMANENTLY INSTALLED BUT MUST HAVE THE
CAPABILITY TO ACCURATELY MONITOR THE OPERATION OF THE VEHICLE AND NOTIFY
PARENTS OR GUARDIANS OF THE LOCATION OF SUCH  AUTOMOBILE  OR  OF  UNSAFE
VEHICULAR  MOVEMENTS  THAT ARE OCCURRING WHILE SUCH VEHICLE IS UNDER THE
CONTROL OF A MINOR VEHICLE OPERATOR.
  (III) SUCH DEVICE MAY INCLUDE A REMOVABLE DEVICE OR CHIP WHICH  INTER-
FACES  WITH  THE AUTOMOBILE'S ONBOARD DIAGNOSTIC SYSTEM PORT AND RECORDS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03128-01-5

S. 1663                             2

DATA FROM THE MANUFACTURER'S EVENT  DATA  RECORDER;  PROVIDED,  HOWEVER,
THAT SUCH DEVICE HAS THE CAPACITY TO ACCURATELY MONITOR THE OPERATION OF
THE AUTOMOBILE.
  (B)  "MINOR  CHILD"  SHALL  MEAN  A PERSON UNDER THE AGE OF TWENTY-TWO
YEARS WHO HOLDS A LICENSE TO OPERATE A MOTOR VEHICLE.
  (2) THE SUPERINTENDENT SHALL, IN CONSULTATION WITH THE COMMISSIONER OF
MOTOR VEHICLES, PROMULGATE RULES AND REGULATIONS TO ESTABLISH QUALIFICA-
TIONS AND STANDARDS FOR THE APPROVAL, UTILIZATION  AND  INSTALLATION  OF
AUTOMOTIVE SAFETY MONITORING DEVICES.
  (3)  NOTHING IN THIS SUBSECTION SHALL BE CONSTRUED TO PREVENT AN AUTO-
MOBILE INSURER FROM  PROVIDING  ACTUARIALLY  APPROPRIATE  REDUCTIONS  IN
PREMIUM  CHARGES FOR BODILY INJURY LIABILITY, PROPERTY DAMAGE LIABILITY,
PERSONAL INJURY PROTECTION, MEDICAL PAYMENTS AND COLLISION COVERAGE  FOR
COMMERCIAL  AUTOMOBILE  INSURANCE  POLICIES  TO  ANY OTHER INSURED WHOSE
AUTOMOBILE IS EQUIPPED WITH AUTOMOTIVE SAFETY MONITORING DEVICES.
  S 2. This act shall take effect on the first of January next  succeed-
ing  the date on which it shall have become a law and shall apply to all
policies issued, renewed, modified, altered or amended on or after  such
date;  provided  that  any  and  all rules and regulations and any other
measures necessary to implement any provision of this act on its  effec-
tive date may be promulgated and taken on or before such effective date.

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