S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7614
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 25, 2023
                                ___________
 
 Introduced  by M. of A. STERN -- 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. The insurance law is amended by adding a new  section  2354
 to read as follows:
   §  2354.  USE OF TELEMATICS. (A) AS USED IN THIS SECTION, "TELEMATICS"
 OR "USAGE-BASED INSURANCE" MEANS UTILIZING DATA  COLLECTED  RELATING  TO
 ANY  OF  THE  FOLLOWING  REGARDING  A  VEHICLE  OR  DRIVER USING VEHICLE
 SYSTEMS, RECORDING SENSORS, OR A TELECOMMUNICATIONS DEVICE FOR INSURANCE
 OPERATIONS  INCLUDING  PRICING,  UNDERWRITING,  CLAIMS,   AND   CUSTOMER
 SERVICE:
   (1) VEHICLE SPEED, LOCATION, MILEAGE, AND OPERATING HOURS;
   (2) DRIVER ACCELERATION, BRAKING, AND CORNERING HABITS;
   (3)  TELEPHONE  SCREEN TOUCH-ENGAGEMENT, INCLUDING BUT NOT LIMITED TO,
 HANDHELD PHONE CALL AND TEXT USAGE DURING VEHICLE OPERATION;
   (4) ROAD AND WEATHER CONDITIONS;
   (5) ENGINE DIAGNOSTICS;
   (6) ADVANCED DRIVER ASSISTANCE  SYSTEMS  (ADAS),  INCLUDING  MOTORIZED
 SEAT BELTS; AND
   (7)  ANY  OTHER  DATA  POINT  RELATED  TO THE USE AND OPERATION OF THE
 INSURED VEHICLE THAT HAS BEEN FILED WITH AND APPROVED BY THE SUPERINTEN-
 DENT.
   (B) AN INSURER THAT ISSUES, SELLS, OR DELIVERS  PRIVATE  PASSENGER  OR
 COMMERCIAL  AUTOMOBILE  INSURANCE OR POLICIES IN THE STATE MAY, WITH THE
 CONSENT OF THE PARTICIPATING DRIVER, OR THE NAMED INSURED IF THE PARTIC-
 IPATING DRIVER IS A MINOR, COLLECT TELEMATICS DATA:
   (1) FOR ESTABLISHING AN INSURANCE PREMIUM FOR THE POLICY THAT  INSURES
 THAT VEHICLE AND/OR OPERATOR;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11529-01-3
              

 A. 7614                             2
 
   (2) FOR CLAIMS SETTLEMENT PURPOSES, INCLUDING INVESTIGATION OF FRAUD;
   (3) FOR RATE FILING PURPOSES USING AGGREGATED TELEMATICS DATA; AND
   (4) FOR OTHER CUSTOMER SERVICE PURPOSES, INCLUDING BUT NOT LIMITED TO:
 SAFETY,  INCLUDING  CRASH  DETECTION;  RISK MITIGATION, INCLUDING SEVERE
 WEATHER WARNINGS; ADDITIONAL INSURANCE PROTECTION; AND CONVENIENCE.
   (C) WITH RESPECT TO  PRIVATE  PASSENGER  MOTOR  VEHICLE  INSURANCE  AN
 INSURER  SHALL NOT REQUIRE AN APPLICANT OR A POLICYHOLDER TO PARTICIPATE
 IN A PROGRAM THAT MEASURES THE OPERATION OF  AN  INSURED  VEHICLE  AS  A
 CONDITION  FOR PRICING OR UNDERWRITING A PRIVATE PASSENGER MOTOR VEHICLE
 INSURANCE RISK UNLESS THE INSURER:
   (1) ONLY OFFERS PRIVATE PASSENGER  MOTOR  VEHICLE  INSURANCE  PRODUCTS
 THAT  REQUIRE  INSUREDS  TO  PARTICIPATE  IN A PROGRAM THAT MEASURES THE
 OPERATION OF AN INSURED VEHICLE, AND DISCLOSES SUCH REQUIREMENT TO:
   (I) AN APPLICANT AT THE TIME OF APPLICATION; AND
   (II) A POLICYHOLDER AT THE TIME OF RENEWAL; AND
   (2) INCLUDES THE INFORMATION REQUIRED TO BE DISCLOSED IN PARAGRAPH ONE
 OF THIS SUBSECTION  IN  ANY  ADVERTISING  MATERIALS  FOR  THE  INSURANCE
 PRODUCTS OFFERED BY THE INSURER.
   (D) (1) THIS SECTION SHALL NOT APPLY TO A PREMIUM INCREASE FOR A DRIV-
 ER OR VEHICLE DUE TO A TELEMATICS PROGRAM THAT MEASURES DRIVING BEHAVIOR
 DURING THE CURRENT POLICY PERIOD.
   (2)  NOTICE TO A PARTICIPATING DRIVER, OR NAMED INSURED IF THE PARTIC-
 IPATING DRIVER IS A MINOR, OF A PREMIUM INCREASE RESULTING FROM THE  USE
 OF  TELEMATICS DATA SHALL BE MADE PURSUANT TO REGULATIONS PROMULGATED BY
 THE SUPERINTENDENT IN ACCORDANCE WITH 15 U.S.C. § 1681M.
   (E) ANY PREMIUM INCREASE ESTABLISHED PURSUANT  TO  SUBSECTION  (D)  OF
 THIS  SECTION SHALL BE MADE PURSUANT TO THE PROVISIONS OF SUBSECTION (B)
 OF SECTION TWO THOUSAND THREE HUNDRED FIVE OF THIS CHAPTER.
   (F) AN INSURER MAY SHARE DATA OBTAINED THROUGH TELEMATICS:
   (1) WITH THE NAMED INSURED;
   (2) WITH A PERSON, NATURAL OR LEGAL, OTHER THAN THE NAMED INSURED ONLY
 IF THE NAMED INSURED PROVIDES CONSENT; OR
   (3) IN ACCORDANCE WITH A COURT ORDER OR SUBPOENA.
   (G) ANY INSURER THAT OFFERS  THE  USE  OF  TELEMATICS  OR  USAGE-BASED
 INSURANCE, OR ANY SUCH PROGRAM THAT MEASURES THE OPERATION OF AN INSURED
 VEHICLE DURING THE CURRENT POLICY PERIOD, SHALL DO SO IN ACCORDANCE WITH
 THE  PROVISIONS  OF  ARTICLE  TWENTY-SIX  OF  THIS CHAPTER APPLICABLE TO
 PRIVATE PASSENGER AUTO INSURANCE.
   (H) THE SUPERINTENDENT SHALL HAVE THE POWER TO PROMULGATE,  FROM  TIME
 TO  TIME, SUCH REGULATIONS, NOT INCONSISTENT WITH THE PROVISIONS OF THIS
 CHAPTER, AS MAY BE APPROPRIATE TO  CARRY  OUT  THE  PROVISIONS  OF  THIS
 SECTION  AND, INSOFAR AS APPLICABLE TO THIS SECTION, OTHER PROVISIONS OF
 THIS CHAPTER.
   § 2. Section 2324 of the insurance law is  amended  by  adding  a  new
 subsection (c) to read as follows:
   (C)  THIS SECTION SHALL NOT PROHIBIT ANY INSURER FROM OFFERING PARTIC-
 IPATION IN A LOSS PREVENTION PROGRAM THAT PROMOTES AND INCENTIVIZES SAFE
 DRIVING BEHAVIOR, WITH REWARDS, INCLUDING THROUGH THE USE OF  TELEMATICS
 AS  DEFINED  UNDER SECTION TWO THOUSAND THREE HUNDRED FIFTY-FOUR OF THIS
 ARTICLE, SO LONG AS PARTICIPATION IN SUCH PROGRAM  IS  OFFERED  BOTH  TO
 MEMBERS OF THE GENERAL PUBLIC AND TO THE INSURER'S POLICYHOLDERS.
   §  3.  This  act shall take effect on the ninetieth day after it shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made and completed
 on or before such effective date.