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.
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.
STATE OF NEW YORK ________________________________________________________________________ 1211 2011-2012 Regular Sessions IN 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