Prohibits insurer from increasing auto insurance premiums upon renewal for persons 60 years of age or over based solely on the ground of the insured's age.

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S1211-2011 Actions

• Jan 4, 2012: REFERRED TO INSURANCE
• Jan 6, 2011: REFERRED TO INSURANCE

S1211-2011 Memo

BILL NUMBER:S1211

TITLE OF BILL:
An act
to amend the insurance law, in relation to prohibiting the increase of
premiums or failure to renew automobile insurance policies for persons
60 years of age or over

PURPOSE OR GENERAL IDEA OF BILL:
To prohibit automobile insurance carriers from increasing insurance
rates solely on the basis of age.

SUMMARY OF SPECIFIC PROVISIONS:
Amends subsection (i) of � 3425 of the insurance law with respect to
automobile insurance policies. No insurer shall increase the premium
billed to an insured who is sixty years of age or over for the
renewal of an existing policy solely on the ground of the age of the
insured.

JUSTIFICATION:
The automobile insurance industry presently has in place a
discriminatory grading system, whereby insurance rates may be raised
simply because a policyholder has reached a specified birthday, which
puts them in a more expensive rating.

It is a common practice among automobile insurance carriers to raise
premiums on elderly customers when they reach their 75th, 80th, or
other birthday. These customers experience rising insurance rates,
yet they have not been involved in any accidents or violations of the
Motor Vehicle and Traffic Law which would merit rate increases. After
years of responsible driving and loyalty to their insurance company,
senior citizens suddenly find their automobile insurance rates
increased solely because they have gotten older. Senior citizens are
normally known as responsible, cautious drivers who obey motor
vehicle laws and operate their cars in a competent manner.

This industry-wide practice is discriminatory against the elderly,
many of whom are on fixed incomes and may have difficulty finding the
financial resources to pay for the ever increasing rates as they get
older.

PRIOR LEGISLATIVE HISTORY:
Introduced in previous legislative sessions.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
The first of January next succeeding the date on which it shall have
become law and shall apply to renewals of policies issued on and
after such date.

S1211-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    1211

                         2011-2012 Regular Sessions

                              I N  SENATE

                               January 6, 2011
                                 ___________

  Introduced  by Sen. STAVISKY -- 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  prohibiting  the
    increase of premiums or failure to renew automobile insurance policies
    for persons 60 years of age or over

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. Subsection (i) of section 3425  of  the  insurance  law  is
  amended to read as follows:

    (i)  (1)  No  insurer  shall refuse to issue or renew a covered policy
  solely on the ground of the advanced age of the applicant or insured.
    (2) WITH RESPECT TO AUTOMOBILE INSURANCE POLICIES,  NO  INSURER  SHALL
  INCREASE  THE  PREMIUM BILLED TO AN INSURED WHO IS SIXTY YEARS OF AGE OR
  OVER FOR THE RENEWAL OF AN EXISTING POLICY SOLELY ON THE GROUND  OF  THE
  AGE OF THE INSURED.
    S  2. This act shall take effect on the first of January next succeed-
  ing the date on which it shall have become a  law  and  shall  apply  to
  renewals of policies issued on and after such date.





   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD04824-01-1