New York S 4131: Directs the superintendent of financial services to promulgate rules and regulations limiting the use of credit scores to determine automobile insurance premiums

Bill Text

Bill Search and Legislative Information | New York State Assembly 

• 

• 

• 

• 

• 

• 

• 

• 

 Skip to main content 

 New York State Assembly

 Speaker Carl E. Heastie

 --> 
 --> 

 --> 

• 
 Assembly Members 

• 
 Legislative Info 

• 
 Public Hearings 

• 
 Speaker's Press 

• 
 Assembly Reports 

• 
 Committees & More 

• Bill Search Home
• Laws
• Legislative Calendar
• Public Hearing Schedule
• Assembly Calendars
• Assembly Committee Agenda 

 Javascript must be enabled to properly view this page. 

 Bill No.: 

• Summary 
• Actions 
• Committee&nbspVotes 
• Floor&nbspVotes 
• Memo 
• Text 
• LFIN 
• Chamber&nbspVideo/Transcript 
S04131 Summary:

BILL NOS04131 

&nbsp

SAME ASSAME AS A05638

&nbsp

SPONSORPARKER

&nbsp

COSPNSRADDABBO, BAILEY, PERSAUD, RYAN C

&nbsp

MLTSPNSR

&nbsp

&nbsp

Directs the superintendent of financial services to promulgate rules and regulations limiting the use of credit scores to determine automobile insurance premiums.

Go to top S04131 Actions:

BILL NOS04131 

&nbsp

02/03/2025REFERRED TO INSURANCE

01/07/2026REFERRED TO INSURANCE

Go to topS04131 Committee&nbspVotes:

Go to topS04131 Floor&nbspVotes:

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

Go to topS04131 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 4131

 2025-2026 Regular Sessions

 IN SENATE

 February 3, 2025
 ___________

 Introduced by Sens. PARKER, ADDABBO, BAILEY, PERSAUD -- read twice and
 ordered printed, and when printed to be committed to the Committee on
 Insurance

 AN ACT in relation to directing 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.
 LBD07680-01-5

 S. 4131 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 such super-
 6 intendent determines that such methods are utilized such superintendent
 7 shall promulgate amended rules and regulations which do not include the
 8 use of credit scoring methods. If such superintendent determines that
 9 such methods are not utilized, they shall promulgate rules and regu-
 10 lations which prohibit the future use of credit scoring methods.
 11 § 3. This act shall take effect on the one hundred twentieth day after
 12 it shall have become a law. Effective immediately, the addition, amend-
 13 ment and/or repeal of any rules or regulations necessary for the imple-
 14 mentation of the provisions of this act on its effective date are
 15 authorized to be made and completed on or before such effective date.

Go to top 

• 

 Sitemap 

 Request Information 

 Directions and Maps