BILL NUMBER: S5764

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the insurance law, in relation to using driving history
as a rating or underwriting factor for private passenger motor vehicle
insurance

 
PURPOSE:

This bill would require verification of driving history when used as a
rating or underwriting factor for private passenger motor vehicle insur-
ance.

 
SUMMARY OF PROVISIONS:

Section one amends the insurance law to add a new section 2617 regarding
verification of driving history. The section establishes that no insurer
who utilizes an applicant's driving history as a rating or underwriting
factor for private passenger motor vehicle insurance in the state shall
bind a policy of insurance, or accept a down payment for a policy, with-
              

out first verifying said applicant's driving history, as well as the
driving history of all named-drivers listed by the applicant on the
private passenger motor vehicle insurance application, through the use
of a reliable third party database.

Section two establishes the effective date.

 
JUSTIFICATION:

There is currently a practice in the insurance community of certain
carriers of personal automobile policies binding coverage based on an
initial quote and questionnaire with the insured, and then raising the
premium following a check of the insureds driving history.  Responsible
insurance agents and companies utilize all available underwriting
resources prior to binding a policy for an insured. The practice of
intentionally disregarding driver history information in order to pres-
ent a false price to an insurance consumer undermines the credibility of
the insurance industry as a whole. Consumers should be able to rely on
the quotes for insurance policies to be fair and accurate so they can
determine whether the coverage is affordable. This practice detracts
from that ability and leaves the consumers bound to policies that are
much more expensive than originally represented and in some cases, unaf-
fordable. Requiring all carriers to run motor vehicle reports prior to
binding coverage would guarantee the consumer will receive a fair and
accurate quote prior to committing to the expense.

 
LEGISLATIVE HISTORY:

S.7987 of 2017-18

S.3641 of 2019-20

S.3578 of 2021-22

 
FISCAL IMPLICATIONS:

None.
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law and shall apply to policies issued, renewed or modified on
or after such date. Effective immediately, any actions necessary to
implement the provisions of this act on its effective date are author-
ized and directed to be completed on or before such date.

                                 
BILL NUMBER: S5764B

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the insurance law, in relation to using driving history
as a rating or underwriting factor for private passenger motor vehicle
insurance

 
PURPOSE:

This bill would require verification of driving history when used as a
rating or underwriting factor for private passenger motor vehicle insur-
ance.

 
SUMMARY OF PROVISIONS:

Section one amends the insurance law to add a new section 2327 regarding
verification of driving history. The section establishes that no insurer
who utilizes an applicant's driving history as a rating or underwriting
factor for private passenger motor vehicle insurance in the state shall
bind a policy of insurance, or accept a down payment for a policy, with-
              

out first making a good faith effort to verify said applicant's driving
history, as well as the driving history of all named-drivers listed by
the applicant on the private passenger motor vehicle insurance applica-
tion, through the use of a third party database unless the driving
history is unavailable.

Section two establishes the effective date.

 
JUSTIFICATION:

There is currently a practice in the insurance community of certain
carriers of personal automobile policies binding coverage based on an
initial quote and questionnaire with the insured, and then raising the
premium following a check of the insureds driving history.

Responsible insurance agents and companies utilize all available under-
writing resources prior to binding a policy for an insured. The practice
of intentionally disregarding driver history information in order to
present a false price to an insurance consumer under mines the credibil-
ity of the insurance industry as a whole. Consumers should be able to
rely on the quotes for insurance policies to be fair and accurate so
they can determine whether the coverage is affordable. This practice
detracts from that ability and leaves the consumers bound to policies
that are much more expensive than originally represented and in some
cases, unaffordable. Requiring all carriers to run motor vehicle reports
prior to binding coverage would guarantee the consumer will receive a
fair and accurate quote prior to committing to the expense.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the 180th day after it shall have become a
law and shall apply to policies issued or renewed on or after such date.
Effective immediately, any actions necessary to implement the provisions
of this act on its effective date are authorized and directed to be
completed on or before such date.