Bill Text: CA AB311 | 2025-2026 | Regular Session | Amended
Bill Title: Consumer Driving Data Protection Act of 2026.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Engrossed) 2026-07-09 - Read second time and amended. Re-referred to Com. on APPR. [AB311 Detail]
Download: California-2025-AB311-Amended.html
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Amended
IN
Senate
July 09, 2026 |
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Amended
IN
Senate
June 10, 2026 |
CALIFORNIA LEGISLATURE—
2025–2026 REGULAR SESSION
Assembly Bill
No. 311
| Introduced by Assembly Member McKinnor |
January 23, 2025 |
An act to add Article 10.5 (commencing with Section 1861.5) to Chapter 9 of Part 2 of Division 1 of the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
AB 311, as amended, McKinnor.
Consumer Driving Data Protection Act of 2026.
The Insurance Rate Reduction and Reform Act of 1988, an initiative measure enacted by Proposition 103, as approved by the voters at the November 8, 1988, statewide general election, prohibits specified insurance rates from being approved or remaining in effect that are excessive, inadequate, unfairly discriminatory, or otherwise in violation of the act. Under the act, rates and premiums for automobile insurance are determined based on specified factors, including the insured’s driving safety record. Existing law authorizes the provisions of Proposition 103 to be amended by a statute that furthers the purposes of the act and is enacted by the Legislature with a 2/3 vote.
This bill, the Consumer Driving Data Protection Act of 2026, would authorize
a consumer to opt to use telematics to establish their driving record, thus amending Proposition 103. The bill would prohibit the use of telematics data for a purpose other than rating private passenger automobile insurance. The bill would require a rate application under which telematics would be used to establish an insured’s driving record to include specified materials related to the insurer’s telematics program. This bill would prohibit an insurer that uses telematics from taking specified actions, including conditioning eligibility for a discount upon participation in a telematics program, unless the discount is approved by the commissioner. The bill would also set forth written consent and privacy requirements for the collection and use of telematics data. The bill would authorize the commissioner to impose specified penalties for violations of the bill’s provisions, including civil penalties
and suspension of an insurer’s telematics program.
This bill would require an insurance provider or third-party vendor to take specified actions with respect to the telematics data, including immediately deleting the data once a rating has been assigned to the consumer and obtaining an express written or electronic signature of a consumer on a notice meeting specified conditions. The bill would additionally prohibit an insurance provider or third-party vendor from keeping the telematics data for longer than 6 months and collecting audio or visual recordings of the occupants of the vehicle or persons outside the vehicle, among other specified prohibitions. The bill would declare that its provisions further the purposes of Proposition 103.
Existing constitutional provisions require that a statute that
limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
Digest Key
Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
This act shall be known, and may be cited, as the Consumer Driving Data Protection Act of 2026.SEC. 2.
The Legislature finds and declares all of the following:(a) (1) The Insurance Rate Reduction and Reform Act of 1988, an initiative measure enacted by Proposition 103, as approved by the voters at the November 8, 1988, statewide general election (Proposition 103), established a prior approval system for private passenger automobile insurance rates and required automobile insurers to use the following three mandatory rating factors in order of importance:
(A) Driving safety record.
(B) Annual miles driven.
(C) Years of driving experience.
(2) Neither the text of Proposition 103 nor the associated ballot materials from the 1988 campaign define the first mandatory rating factor: “driving safety record.”
(3) In addition, Proposition 103 authorizes the Insurance Commissioner to adopt regulations that add additional, optional rating factors that an automobile insurer may, but is not required to, use after the commissioner determines they have a substantial relationship to the risk of loss. In Foundation for Taxpayer & Consumer Rights v. Garamendi (2005) 132 Cal.App.4th 1354, the California Court of Appeals stated that Proposition 103 “delegated the exclusive authority to approve ‘optional rating factors’ to the elected
Insurance Commissioner” and, further, held that any legislative attempt to add optional rating factors “arrogates to the Legislature the Insurance Commissioner’s exclusive authority to adopt optional rating factors, contrary to Proposition 103.”
(b) Since issuance of the original California Department of Insurance regulations in 1989 defining the first mandatory rating factor, the only permissible data to determine “driving safety record” has been a driver’s Motor Vehicle Report (MVR) at the California Department of Motor Vehicles, which includes traffic violation convictions and principally-at-fault crashes. There has been significant technological advancement since adoption of these regulations in 1989, when cutting-edge technology included dial-up internet, fax machines, and the first GPS satellites. California is the only remaining state that
mandates exclusive use of MVR data to measure driving safety record, following New York’s decision in 2021 and Idaho’s decision in 2022 to authorize “usage based insurance” or “telematics” programs that rely upon actual, observed driving data collected directly by a vehicle or by a plug-in or wireless device that connects to a vehicle. A few examples of permissible driving safety records include speeding above the flow of traffic, distracted driving, including use of cell phones, and hard acceleration, and braking and cornering. By linking those behaviors with higher insurance premiums, telematics programs encourage the opposite behaviors. In his bulletin encouraging auto insurers to adopt telematics programs, New York Superintendent
of
Financial Services Benjamin Lawsky stated: “Telematics programs can be a win-win for insurers and drivers. They can save policyholder money and save lives by making our roads safer. We encourage all New York auto insurers to submit plans to our Department making use of this innovative technology.”
(c) (1) The Legislature may only amend Proposition 103 upon a two-thirds vote and if the legislation “furthers the purposes” of the initiative. The stated purpose of Proposition 103 is “to protect consumers from arbitrary insurance rates and practices, to encourage a competitive insurance marketplace, to provide for an accountable Insurance Commissioner, and to ensure that insurance is fair, available, and affordable for all Californians.”
(2) The
Legislature has repeatedly amended Proposition 103 since its original passage, with courts establishing clear rules that
the Legislature cannot further Proposition 103’s purposes while simultaneously restricting its application. Examples of court decisions striking down legislative amendments include: Amwest Surety Ins. Co. v. Wilson (1995) 11 Cal.4th 1243 (exempting sureties from Proposition 103), Proposition 103 Enforcement Project v. Quackenbush (1998) 64 Cal.App.4th 1473 (reducing the rollback refunds insurers owed policyholders), and Foundation for Taxpayer & Consumer Rights v. Garamendi (2005) 132 Cal.App.4th 1354 (discriminating against previously uninsured drivers and arrogating to the Legislature the Insurance Commissioner’s exclusive authority to adopt optional rating factors).
(3) In adding a modern consumer option to an undefined term in Proposition 103’s mandatory rating factors to allow telematics, with no impact on the Insurance
Commissioner’s exclusive authority to control optional rating factors, the Legislature is furthering the initiative’s purposes. Consistent with the first stated purpose of Proposition 103 to protect consumers from arbitrary rates, this legislation would allow drivers to choose, on a voluntary basis, day-to-day driving measurement of driving safety, as opposed to the current system that only measures driving behavior in isolated incidences or based upon policing presence and practices.
(4) Consistent with the second stated purpose of Proposition 103 of encouraging a competitive insurance market, this legislation would allow automobile insurers to submit rate filings to the Insurance Commissioner, for rejection or approval, that include a wider variety of options for consumers than presently exists. The legislation would not impact
Proposition 103’s prior approval ratemaking requirements.
(5) Consistent with the third stated purpose of Proposition 103 to provide for an accountable Insurance Commissioner, this legislation preserves the Insurance Commissioner’s sole authority to review automobile insurance rate filings that include telematics measurements, subject only to this legislation’s general requirements for consumer privacy protection and public transparency.
(6) Consistent with the fourth stated purpose of Proposition 103 to ensure that insurance is fair, available, and affordable for all Californians, this legislation preserves California’s prior approval rate system implemented by the elected Insurance Commissioner while providing consumers the choice of modern technology that improves
assessment of insurance risk and empowers consumers to make daily improvements in their driving behaviors that are measured and which would translate directly into lower insurance premiums. Regarding fairness of insurance rates, the Legislature acknowledges the 2022 study entitled “Measuring Racial and Ethnic Disparities in Traffic Enforcement with Large-Scale Telematics Data,” by William Cai, Johann Gaebler, Justin Kaashoek, Lisa Pinals, Samuel Madden, and Sharad Goel, which finds that, while the racial composition of traffic stops closely tracks with residential demographics of the areas where enforcement is focused, telematics measurements of speeding are uncorrelated with neighborhood racial or ethnic demographics, and “averaged across the cities we analyze, and after adjusting for differences in speeding behavior, we find that neighborhoods with higher proportions of non-White residents have
greater numbers of speeding stops...Our results show that current enforcement practices can lead to inequities across race and ethnicity.”
(d) (1) In its 2021 publication, “Watch Where You’re Going: What’s Needed to Make Auto Insurance Telematics Work for Consumers,” the Consumer Federation of America states: “While telematics has great potential to help consumers, promote better driving, and make auto insurance more affordable, it also has significant potential for misuse, violations of consumer privacy, and poorly explained premium impacts.”
(2) In its 2023 publication, “Steering Mobility Data to a Better Privacy Regime,” the Electronic Frontier Foundation suggests consumer protection guardrails for deployment of an insurance telematics program,
including all of the following:
(A) Opt-in, informed consumer consent.
(B) Insurer public disclosure of telematics data collection and use, along with clear consumer data access, dispute rules, and a subsequent opt-out procedure.
(C) Consumer consent rights regarding sharing, selling, disclosing, and marketing of data.
(D) Consumer notice rights regarding information sharing.
(E) Continued consumer option to be rated without telematics.
(F) reasonable Reasonable
limits on insurer retention of data.
(3) The purpose of this act is to provide statutory guidance for the voluntary collection, use, analysis, retention, and disclosure of telematics data in private passenger automobile insurance rating, while ensuring actuarial integrity, promoting fairness, preserving regulatory oversight, and safeguarding strong fundamental consumer privacy rights, consistent with these concerns and principles and in furtherance of the purposes of Proposition 103.
(e) Because Proposition 103 does not define “driving safety record” and the California Department of Insurance regulations that initially defined the term are more than 35 years old, leaving California as a national outlier in options for automobile insurance consumers, it is the
intent of the Legislature to modernize California’s outdated, and anachronistic, automobile insurance system, with the purpose of promoting better driving, lowering emissions, and reducing social concern about insurance rates being linked to traffic stops. This legislation authorizing voluntary telematics-based discount programs is consistent with the intent of voters upon passing Proposition 103 in 1988, particularly because this legislation:
(1) Does not alter the mandatory rating factor hierarchy established under Section 1861.02 of the Insurance Code.
(2) Creates an additional consumer option in the undefined term “driving safety record” under the first mandatory factor, while allowing consumers to ignore telematics rating programs in favor of the current MVR system.
(3) Does not disturb the Insurance Commissioner’s exclusive authority over optional rating factors.
(f) California seeks to modernize its insurance regulatory system by adopting a telematics framework consistent with the protections of Proposition 103. It is the intent of the Legislature to authorize voluntary telematics-based rating programs that (1) do not alter the mandatory rating factor hierarchy established under Section 1861.02 of the Insurance Code and (2) are adopted as a “driving record” under the first mandatory factor and are a voluntary consumer choice alternative to the Department of Motor Vehicles motor vehicle record, which has been the only form of driving information allowable for rating purposes since Proposition 103 passed almost 40 years ago.
(g) The purpose of this act is to provide statutory guidance for the voluntary collection, use, analysis, retention, and disclosure of telematics data in private passenger automobile insurance rating, while ensuring actuarial integrity, promoting fairness, preserving regulatory oversight, and safeguarding strong fundamental consumer privacy rights.
(h) Ensuring fairness, transparency, and accountability in the use of telematics data is essential to maintaining public trust in the insurance marketplace and preventing the emergence of hidden or unregulated rating factors.
(i) Consumers have a fundamental interest in controlling their personal driving data, including the right to know what is collected, how it is used, and with
whom it is shared.
(j) Strong privacy and data security standards are necessary to protect consumers from unauthorized access, misuse, or commercial exploitation of telematics data by insurers, third-party telematics providers, or other parties.
(k) A clear statutory framework governing telematics programs will promote innovation, improve existing safety incentives, and highlight for consumers the connection between the environmental benefits of driving fewer miles with lower automobile insurance premiums, while ensuring that new technologies operate within the consumer protection principles established by California law.
SEC. 3.
Article 10.5 (commencing with Section 1861.5) is added to Chapter 9 of Part 2 of Division 1 of the Insurance Code, to read:Article 10.5. Telematics and Usage-Based Insurance Programs
1861.5.
For purposes of this article:(a) “Consent” means a freely given, specific, informed, and unambiguous indication of the consumer’s wishes by which the consumer, or the consumer’s legal guardian, a person who has power of attorney, or a person acting as a conservator for the consumer, including by a statement or by a clear affirmative action, signifies agreement in writing to the processing of telematics data relating to the consumer for a narrowly defined particular purpose. Consent shall be voluntary, informed, affirmative, stand-alone consent provided by the subject consumer before
the collection or use of telematics data.
(b) “Consumer authorization” means the manner in which consumer consent is obtained and documented.
(c) “Scoring model” means a computational, statistical, actuarial, or algorithmic methodology capable of evaluating telematics data, or the inferences derived from those methodologies, to generate a numerical score or predictive assessment used directly or indirectly in rating automobile insurance.
(d) “Telematics” means technology that uses vehicle devices, connected devices, mobile applications, embedded systems, or other technological means to collect, transmit, and analyze objectively measurable data for private passenger automobile insurance rating. Telematics shall not
include the collection of nondriving-related personal information, such as biometric or biometric-adjacent information, audio or visual recordings of vehicle occupants, precise geolocation data outside of a rated trip, and any data unrelated to the operation of a motor vehicle.
(e) “Telematics data” means information electronically collected, transmitted, or derived that reflects the operation, mileage, or use of a motor vehicle, including speed, acceleration, and braking.
(f) “Telematics program” means a program operated by an insurer or third-party telematics provider that collects, receives, analyzes, or uses telematics data for rating.
(g) “Third-party telematics provider” means an entity, including an
affiliate of an insurer, that collects, stores, discloses, processes, or analyzes telematics data used in the business of insurance.
(h) “Written” or “in writing” includes a writing, including electronic communications subject to the Uniform Electronics Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code) or the requirements of Section 38.6.
1861.51.
(a) A consumer may opt to use telematics to establish their driving record for purposes of paragraph (1) of subdivision (a) of Section 1861.02. Participation in a telematics program shall be strictly(b) An insurer that uses telematics shall not do any of the following:
(1) Require participation in a telematics program as a condition of obtaining or renewing
coverage.
(2) Penalize, surcharge, or otherwise adversely underwrite a consumer who declines to participate in a telematics program.
(3) Condition eligibility for a discount upon participation in a telematics program, unless the discount is approved by the commissioner.
(4) Increase premium in increments of less than six months from the date the policy goes into effect. This paragraph does not affect the ability of an insurer to make adjustments throughout the policy term, provided the flexibility is approved by the commissioner in a rate filing for a telematics program.
(c) A consumer may revoke consent for participation in a telematics program at any time.
The revocation shall be effective at the beginning of the following policy term. An insurer may use telematics data collected before the revocation for rating purposes for the remainder of the policy term in which the revocation occurred. begin immediately. If a consumer revokes consent for participation in a telematics program, an insurer shall not collect any telematics data past the point of revocation.
(d) An insurer that uses telematics shall establish a process by which the consumer may appeal data collected through the telematics program that the consumer believes is incorrect, or appeal the application of a rating factor to the consumer. The commissioner
may adopt regulations pertaining to insurer dispute resolution programs.
(e) (1) A request to correct trip data relating to telematics data collected via a mobile device shall be resolved in favor of the consumer.
(2) If a company determines after investigation that a consumer has repeatedly and fraudulently requested changes to their driving history under a telematics program, the insurer shall have the right to return that driver to rating under the traditional rating factors.
(f) A telematics program may consider a driver’s Motor Vehicle Record information from the Department of Motor Vehicles that pertains to high-risk behavior that has resulted in a two-point or three-point violation.
(g) (1) A telematics program shall access a driver’s Motor Vehicle Record information from the Department of Motor Vehicles to determine if the driver is entitled to a Good Driver Discount, as outlined in Sections 1861.02 and 1861.025.
(2) If a driver is entitled to a Good Driver Discount under Sections 1861.02 and 1861.025, then the same Good Driver Discount shall be applied for the initial policy term utilizing telematics. Continuation of the discount may be determined on telematics-based data.
1861.52.
(a) An insurer or third-party telematics provider shall not do any of the following:(1) Collect or use telematics data without obtaining and documenting prior consumer consent in writing or through electronic means, consistent with the consumer’s elected method of communication with the insurer. writing.
(2) Collect or use telematics data that predates the consumer authorization required by this section, including from a third-party telematics
provider, unless the consumer has expressly authorized in writing the insurer to request that data to rate for telematics. If the authorization is not granted, the insurer may continue to traditional rating factors until sufficient telematics data has been collected to provide a telematics rate.
(3) Collect or use telematics data for marketing, or any purpose other than rating of private passenger automobile insurance policies pursuant to Sections 660, 661, and 1861.02.
(4) Underwriting, except as conforms with permitted underwriting application under existing traditional rating factors.
(5) Claims handling, except when expressly
permitted or provided by the driver.
(6) Share or disclose telematics data to a person, except to a third-party telematics provider under contract solely for the purpose of performing telematics-related insurance services, and only to the extent strictly necessary to perform those services.
(7) Sell or obtain valuable consideration in connection with the disclosure of telematics data.
(8) Undertake any other prohibited acts specified by the commissioner in regulation.
(b) (1) Consumer authorization shall be all of the following:
(A) Written in clear, plain language easily
understood by the consumer.
(B) Free from any feature or characteristic that may confuse a consumer or impair the consumer’s ability to freely express the consumer’s preference. It shall be equally easy for a consumer to opt out of a telematics program as it is to opt in, and ready means shall be provided for a consumer to opt out of a telematics program once the consumer has opted in.
(C) Provided to the department with the rate application seeking to apply telematics to establish an insured’s driving record.
(2) (A) An insurer shall not disclose to a third party any telematics data other than is necessary to provide the service.
(B) Notwithstanding subparagraph (A), an insurer may disclose telematics data that identifies a consumer, pursuant to a valid, court-issued subpoena or other legally enforceable process. warrant. An insurer shall provide written notice to the consumer before disclosing personally identifiable information pursuant to this subparagraph.
(c) The consumer authorization document shall disclose all of the following, at a minimum:
(1) All categories of telematics data to be collected from the consumer.
(2) The specific devices, methods, and sources that shall be used to collect telematics data from the consumer.
(3) The specific purpose for which the telematics data will be used.
(4) If and how the telematics data will affect premiums.
(5) The identity of a third-party telematics provider that may access the consumer’s telematics data.
(6) The duration of telematics data retention.
(7) The consumer’s right to access the consumer’s telematics data, the process to access the consumer’s telematics data,
the right to receive a copy of all telematics data collected by the insurer, and the process to request correction of incorrect telematics data.
(8) The consumer’s right to revoke authorization at any time.
(9) The consumer’s right to appeal the application of rates developed using telematics data or the accuracy of underlying telematics data.
(10) Additional disclosures specified by the commissioner in regulation.
(d) An insurer shall provide a requesting consumer with access to the consumer’s telematics data and a clear explanation of how the data contributed to a rating determination or any other insurer decision that
impacted the consumer and that relied upon or was informed by telematics data.
(e) (1) Before using telematics data to make a rating determination or any other insurer decision, the insurer shall provide the insured an opportunity to review the telematics data collected to that point, and any areas identified for improvement, and provide the insured with the ability to choose between the following options:
(A) Authorize a rating determination based on the collected telematics data.
(B) Request deletion of the collected telematics data before being used to make a rating determination or any other insurer decision and initiate one additional period of telematics data collection of at least 30 days in order
to make a rating determination.
(C) Revoke consent for participation in the telematics program, pursuant to subdivision (c) of Section 1861.51.
(2) The insurer shall allow for at least 30 days of telematics data collection before providing the insured the ability to review, as provided in paragraph (1).
(3) The insurer shall provide clear and conspicuous notice to the insured of the right provided by this subdivision.
(f) An insurer shall provide a consumer with a copy, in an accessible format, of all telematics data collected by the insurer upon request by the consumer. The commissioner may adopt regulations regarding the appropriate format required with consideration of the portability of that data to a different insurer or telematics provider.
1861.53.
(a) Advertising materials relating to the insurer’s private passenger automobile insurance products shall clearly state that both telematic and traditional insurance products are available to the consumer.(b) When advertising rates or savings, or providing a quote to a consumer, an insurer shall clearly indicate the rates or savings related to participation in the insurer’s telematics program, and shall provide a comparison rate from an equivalent traditional product offered by the insurer.
1861.54.
(a) Telematics data shall be used only for rating for private passenger automobile insurance, as described in subdivision (a) of Section 660 and paragraph (1) of subdivision (a) of Section 1861.02.(b) The insurer shall obtain prior written consumer authorization before the collection or use of telematics data.
(c) Telematics data shall qualify as a “driving safety record” and shall not be used as a proxy for anything else.
(d) Data collected pursuant to
this article shall not be used for immigration enforcement purposes.
1861.55.
(a) A rate application under which telematics shall be used to establish an insured’s driving record shall be deemed complete only if the insurer submits to the commissioner the following materials related to the insurer’s telematics program:(1) A complete description of the telematics program.
(2) All telematics data elements collected.
(3) All scoring models, including algorithms, variables, and weighting factors.
(4) All validation studies and actuarial support.
(5) All consumer disclosures and authorization forms.
(6) A list of third-party telematics providers with which the insurer is contracted with for purposes of providing telematics in California.
(7) All documentation relating to privacy and data security protections pertaining to telematics data and the insurer’s telematics program.
(8) A complete class plan application.
(9) Any other information required by the commissioner.
(b) Any documents, materials, or other information submitted pursuant to this section that are proprietary or
constitute trade secrets shall be confidential by law and privileged, shall not be subject to public disclosure, including under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and shall not be subject to subpoena, discovery, or admissible in evidence in a private civil action. A waiver of an applicable privilege or claim of confidentiality shall not occur as a result of submission of the information to the commissioner.
1861.56.
(a) Insurers shall regularly conduct, document, and disclose upon request to the department both of the following:(1) Validation studies.
(2) Ongoing model governance of scoring models.
(b) The commissioner may require independent audits.
(c) The commissioner may prohibit or suspend an insurer’s use of a telematics program that causes rates to be excessive, inadequate, or unfairly discriminatory in violation of Section 1861.05 or that violates this article.
(d) Upon request by the commissioner, an insurer shall provide documentation regarding the insurer’s compliance with this article, including any records required to be kept pursuant to this article.
(e) An insurer shall retain all information and documentation sufficient enough to demonstrate compliance with this article for a minimum of seven years. Telematics data itself shall not be required to be retained for that period unless necessary for regulatory compliance, unless otherwise required by the commissioner.
1861.57.
(a) Insurers and third-party telematics providers shall implement administrative, technical, and physical safeguards to protect telematics data.(b) Insurers and third-party telematics providers shall collect only data that is reasonably necessary to determine driving behavior and evaluate risk.
(c) Telematics data shall be retained only as long as necessary for the purposes authorized by the consumer or as required by law. Personally identifiable telematics data shall be deleted in accordance with Article 6.6 (commencing with Section 791) of Chapter 1.
(d) None of the following data shall be collected:
(1) Biometrics data, including facial recognition, fingerprint, retina scan, voice print, or physiological monitoring data.
(2) Audio or visual recordings of vehicle occupants. occupants or persons outside of the vehicle.
(3) Any telematics data that is unrelated to the collected elements of subdivision (a) of Section 1861.6, including data unrelated to safe driving such as time of driving and location of the vehicle.
(4) Other connected vehicle information, including screen captures.
(e) (1) Unless retention is necessary for compliance, fraud investigation, or any other matter of specifically required by law, telematics data shall be deleted upon any of the following:
(1)
(A) Revocation of consumer authorization.
(2)
(B) Termination of participation.
(3)
(C) Consumer request.
(2) If telematics data is not
deleted upon the events identified in subparagraphs (A) to (C), inclusive, of paragraph (1) because it is necessary for compliance, fraud investigation, or specifically required by law, the insured shall be notified of the information that is retained and the reason for that retention.
(f) Telematics data shall not be:
(1) Sold, shared, exchanged, or otherwise disclosed.
(2) Licensed.
(3) Shared or used for marketing.
(4) Used for any purpose, except as permitted under this article and only with explicit consumer authorization.
(5) Transferred to an
affiliate or service provider.
(6) Combined with external datasets.
(g) A governmental entity shall not collect, receive, retain, access, use, disclose, or obtain telematics data, except for deidentified, aggregated telematics data, which shall only be used for roadway safety analysis, infrastructure planning, or crash prevention research as long as the data and derived outputs cannot reasonably identify an individual, vehicle, telematics device, or trip. A governmental entity shall not collect, receive, retain, access, use, disclose, or obtain identifiable trip-level telematics data, identifiable precise geolocation data, identifiable origin and destination data, or any other linked telematics data regulated pursuant to this article. Deidentified, aggregated telematics data and
aggregated inputs derived from that data are not personal information. The exemption for the collection, reception, retention, access, use, disclosure, or obtainment of deidentified, aggregated telematics data shall not apply to a federal governmental entity.
(h) An insurer is fully responsible for the actions of a third-party telematics provider if the insurer knew knew, or reasonably should have known, that the third-party telematics provider was violating this article and did not take steps to stop the violation.
1861.58.
(a) A contract entered into by an insurer or a third-party telematics provider under contract with an insurer for the function of collecting, storing, processing, or analyzing telematics data shall not relieve the insurer of an obligation under this article.(b) An insurer shall conduct due diligence on all third-party telematics providers.
(c) During a market conduct exam pursuant to Section 730, an insurer shall maintain and disclose to the department all written contracts with third-party telematics providers.
(d) An insurer is
responsible for any violations of this code committed by a third-party telematics provider if the insurer knew knew, or reasonably should have known, that the third-party telematics provider was violating this code and did not take steps to stop the violation.
(e) An insurer shall ensure through a written contract that a third-party provider complies with this article.
1861.59.
(a) An insurer shall not deny a consumer the ability to participate in the insurer’s telematics program solely on the basis of one of the following, except to the extent these factors are necessary to meet reasonable technology and compatibility requirements of the program:(1) A vehicle operated by the consumer.
(2) The consumer’s mobile device, carrier, operating system, or other technological attribute.
(3) The consumer’s lack of mobile device.
(4) Any factor beyond the control of the
consumer or that requires the consumer to incur an expense other than the payment of premium, excluding ordinary and incidental costs associated with participation in the program, including mobile device or data usage.
(b) A licensee or a third-party service provider shall not retaliate against a consumer because the consumer exercised or attempted to exercise the consumer’s rights pursuant to this article, including declining to participate in a telematics program. A licensee or a third-party service provider retaliates against a consumer if the licensee or third-party service provider, as a result of a consumer’s privacy choices, does any of the following:
(1) Infringes upon a right, or impairs or impedes a benefit or protection, that is afforded to a consumer under this
article.
(2) Requires the consumer to consent to sharing of the consumer’s personal information for a purpose unrelated to the telematics program to obtain a particular product, coverage, rate, or service, if the consumer has an option to consent to sharing pursuant to this article.
(3) Imposes a fee or charge for a consumer to exercise the consumer’s rights pursuant to this article.
(4) Charges a different rate or premium to the consumer, other than as approved by the commissioner in a rate application using telematics.
(5) Provides a different insurance product.
(c) An insurer shall not
condition participation in a telematics program upon waiver of the rights held by a consumer or require a consumer to submit to binding arbitration with respect to any matters arising from the insurer’s telematics program.
1861.6.
Notwithstanding any other provisions in this article, an insurance provider or third-party vendor shall do all of the following:(a) Collect only data that is strictly necessary to determine that a consumer is doing any of the following:
(1) Driving the posted speed limit or with the speed of traffic in order to determine whether the consumer is posing a risk to themselves or others.
(2) Braking abruptly in a dangerous manner.
(3) Coming to a complete stop at all stop signs and red lights.
(4) Changing lanes frequently to determine if the car is unsafely weaving in and out of traffic.
(b) (1) Delete all data previously collected through the telematics program, including any ratings based upon telematics data, within 24 hours of receiving the notice if a consumer elects to leave the telematics program or program, changes insurance providers.
providers, or terminates coverage.
(2) Provide a consumer with the option to obtain a copy, in an accessible format, of all telematics data collected by the insurer before the data deletion pursuant to paragraph (1).
(c) Immediately delete the collected data once a rating has been assigned to the consumer and refrain from collecting additional data prior to the next policy renewal period.
(d) Only use data collected while the car is being operated.
(e) If using cameras facing outside of the car to capture the surrounding traffic, render unidentifiable in
any video recording or photographic images all of the following:
(1) Drivers.
(2) Passengers.
(3) Pedestrians.
(4) Any other individuals captured by the camera.
(5) License plates.
(f) Obtain the express written or electronic signature of a consumer on a notice that complies with all of the following:
(1) Communicates, in clear and understandable language, all of the following:
(A) Participation in a telematics
program shall be strictly voluntary and that a consumer shall opt in to participate.
(B) All categories of telematics data to be collected from the consumer.
(C) The specific devices, methods, and sources that shall be used to collect telematics data from the consumer.
(D) The specific purpose for which the telematics data will be used.
(E) If and how the telematics data will affect premiums.
(F) The identity of a third-party telematics provider that may access the consumer’s telematics data.
(G) The duration of telematics data
retention.
(H) The consumer’s right to access the consumer’s telematics data, the process to access the consumer’s telematics data, and the process to request correction of incorrect telematics data.
(I) The consumer’s right to revoke authorization at any time.
(J) The consumer’s right to appeal application of a rating factor developed using telematics data or the accuracy of underlying telematics data.
(K) Additional disclosures specified by the commissioner in regulation.
(2) Written in clear, plain language easily understood by the consumer.
(3) Presented as a stand-alone document separate from any other policy documents.
1861.61.
Notwithstanding any other provisions in this article, an insurance provider or third-party vendor shall not do any of the following:(a) Collect audio or visual recordings of the occupants inside of the vehicle, including the driver. driver, or persons outside of the vehicle.
(b) Use technology that collects biometric information, including imagery of the iris, retina, fingerprint, face, hand, palm, vein patterns, heart rate, neural activity, voice recordings,
or any other information identifying the unique characteristics of a person.
(c) Combine the data collected through the in-car technology with any other data, including information acquired from another business or affiliate. This includes a business operating as a data broker, as defined in Section 1798.99.80 of the Civil Code.
(d) Combine the data described in subdivision (c) with any other data to make inferences about whether a person is a safe driver.
(e) Use telematics data for any purpose other than identifying whether a driver is driving safely and following street and highway safety laws.
(f) Sell or share the data with another business, including an affiliated
business.
(g) Purchase or acquire data from another source as part of a telematics program.
(h) Retain telematic data for more than six months.
(i) Collect any telematics data that is unrelated to the collected elements of subdivision (a) of Section 1861.6, including data unrelated to safe driving such as time of driving, location of the vehicle, and other connected vehicle information, including screen captures.
1861.62.
(a) A violation of this article constitutes a rating violation pursuant to Sections 1858.07 and 1858.1.(b) The commissioner may impose any of the following, in accordance with Sections 1858, 1859, and 1859.1:
(1) Civil penalties.
(2) Corrective orders.
(3) Suspension of the insurer’s telematics program.
(4) License discipline, including revocation of the insurer’s certificate of authority.
(c) Hearings and judicial review shall be conducted in accordance with Article 7 (commencing with Section 1858).
1861.63.
The commissioner shall, as the commissioner deems necessary, adopt regulations to administer this article. These regulations shall be exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).SEC. 4.
The Legislature finds and declares that Section 3 of this act, which adds Section 1861.55 to the Insurance Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:To protect proprietary information and trade secrets, it is necessary for documents, materials, and other information submitted pursuant to
this act to be kept confidential.
