S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10015
 
                           I N  A S S E M B L Y
 
                                May 1, 2024
                                ___________
 
 Introduced by M. of A. LAVINE -- read once and referred to the Committee
   on Insurance
 
 AN  ACT to amend the insurance law, in relation to the use of telematics
   systems by insurers
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subsection  (a)  of  section 2313 of the insurance law is
 amended and a new subsection (u) is added to read as follows:
   (a) In this article, "rate service organization" means a person or any
 other entity which makes or files rates as permitted by this article, or
 which assists insurers in rate making or filing by collecting, compiling
 and furnishing loss or expense statistics, or by recommending  rates  or
 rate  information, or which inspects risks, tests appliances, formulates
 rules or establishes standards, as such activities relate to rate making
 or to administration of rates. IT SHALL  ALSO  INCLUDE  ANY  THIRD-PARTY
 DEVELOPERS  OR  VENDORS OF TELEMATICS SYSTEMS AS SUCH TERM IS DEFINED IN
 THIS SECTION. It shall include a person or  entity  which  prepares  and
 files  policy forms and endorsements on behalf of insurers. It shall not
 include a joint underwriting  association  under  section  two  thousand
 three  hundred seventeen of this article, or any employee of an insurer,
 or in the case of insurers under common control or management an employ-
 ee of any such insurer or their manager, nor shall it include actuaries,
 certified public accountants, attorneys or other  professionals  who  in
 their respective vocations may advise insurers on rate questions.
   (U)  FOR  THE  PURPOSES OF THIS ARTICLE A TELEMATICS SYSTEM SHALL MEAN
 TECHNOLOGY WHICH MONITORS, STORES  AND  TRANSMITS  INFORMATION  SUCH  AS
 MOTOR  VEHICLE  LOCATION,  DRIVER BEHAVIOR, ENGINE PERFORMANCE AND MOTOR
 VEHICLE  ACTIVITY.  THIRD-PARTY  DEVELOPERS  OR  VENDORS  OF  TELEMATICS
 SYSTEMS SHALL FILE THEIR MODEL OR ALGORITHM WITH THE SUPERINTENDENT.
   §  2.  The  insurance law is amended by adding a new section 2304-a to
 read as follows:
   § 2304-A. TELEMATICS SYSTEMS. (A) ANY INSURER WHICH OFFERS OR UTILIZES
 TELEMATICS SYSTEMS, AS DEFINED IN SECTION  TWO  THOUSAND  THREE  HUNDRED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01935-01-3
              

 A. 10015                            2
 
 THIRTEEN  OF  THIS  ARTICLE, AND ANY THIRD-PARTY DEVELOPER AND VENDOR OF
 TELEMATICS SYSTEMS, SHALL:
   (1)  PROVIDE  TO  THE SUPERINTENDENT AN EXPLANATION OF HOW THE FACTORS
 USED IN THE MODEL OR ALGORITHM ARE CONNECTED  TO  RISK  AND  DEMONSTRATE
 THAT  EACH  FACTOR USED IS RELATED TO RISK OF LOSS AND INCORPORATED IN A
 MANNER THAT DIRECTLY REFLECTS THAT RELATIONSHIP;
   (2) PUBLICLY DISCLOSE SCORING METHODOLOGIES;
   (3) REPORT TO THE SUPERINTENDENT ON WHAT TESTING WAS  DONE  TO  ENSURE
 THAT THE TELEMATICS SYSTEM DOES NOT RESULT IN DISCRIMINATION AGAINST ANY
 PROTECTED  CLASSES OR TO REDUCE DISPARATE IMPACT ON SUCH CLASSES RESULT-
 ING FROM USE OF THE TELEMATICS SYSTEM; AND
   (4) ALLOW CONSUMERS TO REQUEST ACCESS TO THE DATA COLLECTED BY A TELE-
 MATICS SYSTEM IN A MANNER AND FORM PRESCRIBED BY THE SUPERINTENDENT  AND
 PROVIDE THE DATA IN A READABLE FORMAT.
   (B)  NO  INSURER  OR  THIRD-PARTY  DEVELOPER  OR  VENDOR OF TELEMATICS
 SYSTEMS SHALL USE ANY DATA COLLECTED FOR ANY PURPOSE OTHER  THAN  UNDER-
 WRITING AND RATING DECISIONS.
   (C)  NO  INSURER  OR  THIRD-PARTY  DEVELOPER  OR  VENDOR OF TELEMATICS
 SYSTEMS SHALL:
   (1) UNFAIRLY DISCRIMINATE BASED ON RACE,  COLOR,  NATIONAL  OR  ETHNIC
 ORIGIN,  RELIGION, SEX, SEXUAL ORIENTATION, DISABILITY, GENDER IDENTITY,
 OR GENDER EXPRESSION; OR
   (2) USE ANY EXTERNAL CONSUMER DATA AND INFORMATION  SOURCES,  NOR  ANY
 ALGORITHMS  OR  PREDICTIVE  MODELS  THAT  USE EXTERNAL CONSUMER DATA AND
 INFORMATION SOURCES, IN A WAY THAT UNFAIRLY DISCRIMINATES BASED ON RACE,
 COLOR, NATIONAL OR ETHNIC ORIGIN,  RELIGION,  SEX,  SEXUAL  ORIENTATION,
 DISABILITY, GENDER IDENTITY, OR GENDER EXPRESSION.
   (D)  IN ADDITION TO SUCH POWERS AS MAY OTHERWISE BE PRESCRIBED BY THIS
 ARTICLE, THE  SUPERINTENDENT  IS  HEREBY  AUTHORIZED  AND  EMPOWERED  TO
 PROMULGATE  SUCH  RULES  AND  REGULATIONS  AS MAY IN THE JUDGMENT OF THE
 SUPERINTENDENT BE CONSISTENT WITH THE PURPOSES OF THIS ARTICLE OR APPRO-
 PRIATE FOR THE EFFECTIVE ADMINISTRATION OF THIS ARTICLE.
   § 3. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.