BILL NUMBER: S2943

SPONSOR: STAVISKY
 
TITLE OF BILL:

An act to amend the insurance law, in relation to prohibiting the
increase of premiums or failure to renew automobile insurance policies
for persons 60 years of age or over

 
PURPOSE OR GENERAL IDEA OF BILL:

To prohibit automobile insurance carriers from increasing insurance
rates solely on the basis of age.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Subsection (i) of § 3425 of the insurance law is amended.  No
insurer shall increase the premium billed to an insured who is sixty
years of age or over for the renewal of an existing policy solely on the
ground of the age of the insured.

              

 
JUSTIFICATION:

The automobile insurance industry presently has in place a discriminato-
ry grading system, whereby insurance rates may be raised simply because
a policyholder has reached a specified birthday, which puts them in a
more expensive rating.

It is a common practice among automobile insurance carriers to raise
premiums on elderly customers when they reach their 75th, 80th, or other
birthday. These customers experience rising insurance rates, yet they
have not been involved in any accidents or violations of the Motor Vehi-
cle and Traffic Law which would merit rate increases. After years of
responsible driving and loyalty to their insurance company, senior citi-
zens suddenly find their automobile insurance rates increased solely
because they have gotten older. Senior citizens are normally known as
responsible, cautious drivers who obey motor vehicle laws and operate
their cars in a competent manner.

This industry-wide practice is discriminatory against the elderly, many
of whom are on fixed incomes and may have difficulty finding the finan-
cial resources to pay for the ever increasing rates as they get older.

 
PRIOR LEGISLATIVE HISTORY:

2018: S 5214 - Referred to Insurance.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
The first of January next succeeding the date on which it shall have
become law and shall apply to renewals of policies issued on and after
such date.