Bill Text: NY A10015 | 2023-2024 | General Assembly | Introduced

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Bill Title: Requires certain disclosures by automobile insurers relating to the use of telematics systems in determining insurance rates and/or discounts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-05-01 - referred to insurance [A10015 Detail]

Download: New_York-2023-A10015-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          10015

                   IN ASSEMBLY

                                       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:

     1    Section  1.  Subsection  (a)  of  section 2313 of the insurance law is
     2  amended and a new subsection (u) is added to read as follows:
     3    (a) In this article, "rate service organization" means a person or any
     4  other entity which makes or files rates as permitted by this article, or
     5  which assists insurers in rate making or filing by collecting, compiling
     6  and furnishing loss or expense statistics, or by recommending  rates  or
     7  rate  information, or which inspects risks, tests appliances, formulates
     8  rules or establishes standards, as such activities relate to rate making
     9  or to administration of rates. It shall  also  include  any  third-party
    10  developers  or  vendors of telematics systems as such term is defined in
    11  this section. It shall include a person or  entity  which  prepares  and
    12  files  policy forms and endorsements on behalf of insurers. It shall not
    13  include a joint underwriting  association  under  section  two  thousand
    14  three  hundred seventeen of this article, or any employee of an insurer,
    15  or in the case of insurers under common control or management an employ-
    16  ee of any such insurer or their manager, nor shall it include actuaries,
    17  certified public accountants, attorneys or other  professionals  who  in
    18  their respective vocations may advise insurers on rate questions.
    19    (u)  For  the  purposes of this article a telematics system shall mean
    20  technology which monitors, stores  and  transmits  information  such  as
    21  motor  vehicle  location,  driver behavior, engine performance and motor
    22  vehicle  activity.  Third-party  developers  or  vendors  of  telematics
    23  systems shall file their model or algorithm with the superintendent.
    24    §  2.  The  insurance law is amended by adding a new section 2304-a to
    25  read as follows:
    26    § 2304-a. Telematics systems. (a) Any insurer which offers or utilizes
    27  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

     1  thirteen  of  this  article, and any third-party developer and vendor of
     2  telematics systems, shall:
     3    (1)  provide  to  the superintendent an explanation of how the factors
     4  used in the model or algorithm are connected  to  risk  and  demonstrate
     5  that  each  factor used is related to risk of loss and incorporated in a
     6  manner that directly reflects that relationship;
     7    (2) publicly disclose scoring methodologies;
     8    (3) report to the superintendent on what testing was  done  to  ensure
     9  that the telematics system does not result in discrimination against any
    10  protected  classes or to reduce disparate impact on such classes result-
    11  ing from use of the telematics system; and
    12    (4) allow consumers to request access to the data collected by a tele-
    13  matics system in a manner and form prescribed by the superintendent  and
    14  provide the data in a readable format.
    15    (b)  No  insurer  or  third-party  developer  or  vendor of telematics
    16  systems shall use any data collected for any purpose other  than  under-
    17  writing and rating decisions.
    18    (c)  No  insurer  or  third-party  developer  or  vendor of telematics
    19  systems shall:
    20    (1) unfairly discriminate based on race,  color,  national  or  ethnic
    21  origin,  religion, sex, sexual orientation, disability, gender identity,
    22  or gender expression; or
    23    (2) use any external consumer data and information  sources,  nor  any
    24  algorithms  or  predictive  models  that  use external consumer data and
    25  information sources, in a way that unfairly discriminates based on race,
    26  color, national or ethnic origin,  religion,  sex,  sexual  orientation,
    27  disability, gender identity, or gender expression.
    28    (d)  In addition to such powers as may otherwise be prescribed by this
    29  article, the  superintendent  is  hereby  authorized  and  empowered  to
    30  promulgate  such  rules  and  regulations  as may in the judgment of the
    31  superintendent be consistent with the purposes of this article or appro-
    32  priate for the effective administration of this article.
    33    § 3. This act shall take effect on the ninetieth day  after  it  shall
    34  have become a law.