New York S 5342: Relates to the use of telematics systems by insurers

Bill Text

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S05342 Summary:

BILL NOS05342 

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SAME ASSAME AS A07710

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SPONSORCOMRIE

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COSPNSR

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MLTSPNSR

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Add §2354, amd §2324, Ins L

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Provides for the use of telematics or usage-based insurance for private passenger or commercial automobile insurance or policies in certain circumstances.

Go to top S05342 Actions:

BILL NOS05342 

&nbsp

02/20/2025REFERRED TO INSURANCE

01/07/2026REFERRED TO INSURANCE

Go to topS05342 Committee&nbspVotes:

Go to topS05342 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS05342 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 5342

 2025-2026 Regular Sessions

 IN SENATE

 February 20, 2025
 ___________

 Introduced by Sen. COMRIE -- read twice and ordered printed, and when
 printed to be committed 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. The insurance law is amended by adding a new section 2354
 2 to read as follows:
 3 § 2354. Use of telematics. (a) As used in this section, "telematics"
 4 or "usage-based insurance" means utilizing data collected relating to
 5 any of the following regarding a vehicle or driver using vehicle
 6 systems, recording sensors, or a telecommunications device for insurance
 7 operations including pricing, underwriting, claims, and customer
 8 service:
 9 (1) Vehicle speed, location, mileage, and operating hours;
 10 (2) Driver acceleration, braking, and cornering habits;
 11 (3) Telephone screen touch-engagement, including but not limited to,
 12 handheld phone call and text usage during vehicle operation;
 13 (4) Road and weather conditions;
 14 (5) Engine diagnostics;
 15 (6) Advanced driver assistance systems (ADAS), including motorized
 16 seat belts; and
 17 (7) Any other data point related to the use and operation of the
 18 insured vehicle that has been filed with and approved by the superinten-
 19 dent.
 20 (b) An insurer that issues, sells, or delivers private passenger or
 21 commercial automobile insurance or policies in the state may, with the
 22 consent of the participating driver, or the named insured if the partic-
 23 ipating driver is a minor, collect telematics data:
 24 (1) For establishing an insurance premium for the policy that insures
 25 that vehicle and/or operator;
 26 (2) For claims settlement purposes, including investigation of fraud;
 27 (3) For rate filing purposes using aggregated telematics data; and

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD04346-01-5

 S. 5342 2

 1 (4) For other customer service purposes, including but not limited to:
 2 safety, including crash detection; risk mitigation, including severe
 3 weather warnings; additional insurance protection; and convenience.
 4 (c) With respect to private passenger motor vehicle insurance an
 5 insurer shall not require an applicant or a policyholder to participate
 6 in a program that measures the operation of an insured vehicle as a
 7 condition for pricing or underwriting a private passenger motor vehicle
 8 insurance risk unless the insurer:
 9 (1) only offers private passenger motor vehicle insurance products
 10 that require insureds to participate in a program that measures the
 11 operation of an insured vehicle, and discloses such requirement to:
 12 (i) an applicant at the time of application; and
 13 (ii) a policyholder at the time of renewal; and
 14 (2) includes the information required to be disclosed in paragraph one
 15 of this subsection in any advertising materials for the insurance
 16 products offered by the insurer.
 17 (d) (1) This section shall not apply to a premium increase for a driv-
 18 er or vehicle due to a telematics program that measures driving behavior
 19 during the current policy period.
 20 (2) Notice to a participating driver, or named insured if the partic-
 21 ipating driver is a minor, of a premium increase resulting from the use
 22 of telematics data shall be made pursuant to regulations promulgated by
 23 the superintendent in accordance with 15 U.S.C. § 1681m.
 24 (e) Any premium