STATE OF NEW YORK ________________________________________________________________________ 7482 2017-2018 Regular Sessions IN ASSEMBLY April 26, 2017 ___________ Introduced by M. of A. TITONE, HOOPER, DINOWITZ -- Multi-Sponsored by -- M. of A. COLTON, LIFTON, MAGEE -- read once and referred to the Committee on Insurance AN ACT to direct the superintendent of financial services to promulgate rules and regulations relating to excluding the use of "credit scores" in determining auto insurance premiums The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative intent. The legislature finds that the practice 2 of using "credit scores" to determine auto insurance premiums can result 3 in premium fluctuations that are difficult for consumers to manage. In 4 addition, consumers may not be aware of changes in their credit rating 5 and therefore would not have the information they needed to exercise 6 responsible control over a factor which could affect their insurance 7 rates. 8 The legislature further finds that a "credit score" comes from infor- 9 mation contained in consumer credit reports and is considered along with 10 other motor vehicle and driving records to compute insurance risk at a 11 particular point in time. Insurance scoring is predicated on a statis- 12 tical correlation between personal money management and insurance risk. 13 Insurance scoring is one of many factors which can be used to evaluate 14 risks and assign rates. 15 Accordingly, the legislature finds that, since it is a calculation 16 that is one of many used actuarial calculations it need not be a deci- 17 sive factor. It is the purpose of this act to direct the superintendent 18 of financial services to promulgate any rules and regulations necessary 19 to prohibit the use of this method of calculating risk in the formu- 20 lation of auto insurance premiums on policies held by residents of New 21 York. 22 § 2. The superintendent of financial services shall review the actuar- 23 ial methods and formulas currently utilized to determine auto insurance EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11019-01-7

A. 7482 2 1 premiums for New York consumers. Such review shall include a determi- 2 nation of whether or not the manner in which insurance premiums are 3 determined includes the use of "credit scores" or similar means of 4 utilizing consumer credit reports to determine a statistical correlation 5 between personal money management and insurance risk. If the superinten- 6 dent of financial services determines that such methods are utilized he 7 or she shall promulgate amended rules and regulations which do not 8 include the use of credit scoring methods. If the superintendent of 9 financial services determines that such methods are not utilized, he or 10 she shall promulgate rules and regulations which prohibit the future use 11 of credit scoring methods. 12 § 3. This act shall take effect on the one hundred eightieth day after 13 it shall have become a law, provided, however, that effective immediate- 14 ly, the addition, amendment and/or repeal of any rules or regulations 15 necessary for the implementation of the provisions of this act on its 16 effective date is authorized and directed to be made and completed on or 17 before such effective date.