Bill S2001-2013

Permits non-commercial private passenger car insurance to provide for an actuarially appropriate reduction in premium for cars with automotive monitoring devices

Requires any schedule or rating plan for non-commercial private passenger automobile insurance to provide for an actuarially appropriate reduction in premium charges for bodily injury liability, property damage liability, personal injury protection, medical payments and collision coverage with respect to automobiles equipped with an automotive safety monitoring device for parental monitoring of drivers under the age of 22; establishes qualifications and standards for the approval, utilization and installation of such devices.

Details

Actions

  • Jan 8, 2014: REFERRED TO INSURANCE
  • Jan 9, 2013: REFERRED TO INSURANCE

Memo

BILL NUMBER:S2001

TITLE OF BILL: An act to amend the insurance law, in relation to providing premium reductions for non-commercial motor vehicles equipped with automotive safety monitoring devices

PURPOSE: To provide for an actuarially appropriate reduction in automobile insurance rates for those vehicles that have installed an automotive safety monitoring device. The intent of using such devices is to provide parents and guardians of new drivers under the age of 22 with the ability to monitor the driving habits of such young and inexperienced drivers.

SUMMARY OF PROVISIONS:

Section 1: Amends Insurance Law section 2336 to provide for an actuarially appropriate reduction in premiums for vehicles that are equipped with automotive safety monitoring devices. Such devices would he capable of alerting the parent or guardian if a minor child who is operating a vehicle that the car is being driven in an unsafe manner or outside of time or location curfew restrictions.

Such devices should help to monitor vehicular speed, location of the vehicle, distance and direction traveled, acceleration and braking patterns, the number of passengers in the vehicle and other safety indicia that indicates that the car is being driven in a safe or unsafe manner. The Superintendent of Financial Services, in consultation with the Department of Motor Vehicles shall promulgate standards for the approval, utilization and installation of such safety devices.

EXISTING LAW: Under current law, there is no statutorily approved program in New York to reduce auto insurance rates for those persons that install automotive safety monitoring devices to help monitor the driving habits of new drivers. While some auto insurers are beginning to offer programs to better monitor the driving habits of young drivers, this bill put this program in statute to help promote this concept to save the lives of our young drivers.

JUSTIFICATION: Drivers under the age of 21 are almost five times more likely to be involved in a fatal auto accident than persons between the ages of 30 and 69. In 2002, 41 percent of all teen deaths were caused by motor vehicle accidents. That statistic far surpasses other causes of teen deaths, i.e. 14% homicide, 11% suicide, 5% malignant tumors, and 3% heart disease. In 2009, approximately 3,000 teen drivers between the

age of 15 and 19 died as the result of a motor vehicle accident. Further, per mile driven, teen drivers were more than four times more likely than older drivers to crash.

There are several reasons for the high teen death rate in automobiles. Among the reasons are teen inexperience behind a wheel, higher levels of alcohol consumption, the tendency for such drivers to be more aggressive and reckless in traffic conditions, the non-use of seat belts, and because teens tend to drive smaller cars that offer less protection and which are more susceptible to rollovers. Automotive safety monitoring devices such as CarChip, DriveSafe, Real-Time Tracking, RS-1000 Teen Driving System, SmartDriver, and TravelEyes2 do exist. Further, these systems, and others have demonstrated their effectiveness to enable parents and guardians of minor drivers to monitor a youth's driving habits. Promoting the ability of parents to know the driving habits of their children should have a cooling effect on a teen's desire to drive recklessly or to travel to destinations far from home. This is because the above systems allow the parent to communicate directly with their children about unsafe driving practices near the time when such unsafe practices are occurring. In addition, teens may have a heightened desire to drive safer if they know that their parents or guardians are monitoring their driving habits and take away driving privileges if curfews are not followed.

Instituting an actuarially appropriate rate reduction for those insured that install proven safety monitoring systems could reduce insurance rates for targeted populations by up to 25 percent. More importantly, it could save lives. The cost for installing these safety monitoring devices range from $160 up to $500, plus a monthly service fee. Encouraging parents to install these devices is a sound public policy to reduce teen deaths & injuries and the injury or death of other drivers.

A few such driver safety monitoring programs have been operating in New York, however, there is no statutory program to authorize their use. By enacting this law, it is hoped that more auto insurers will make such programs available to New York parents and guardians.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: The first of January next succeeding the date it becomes law.


Text

STATE OF NEW YORK ________________________________________________________________________ 2001 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. CARLUCCI -- 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 providing premium reductions for non-commercial motor vehicles equipped with automotive safety monitoring devices THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 2336 of the insurance law is amended by adding a new subsection (i) to read as follows: (I) ANY SCHEDULE OR RATING PLAN FOR NON-COMMERCIAL PRIVATE PASSENGER AUTOMOBILE INSURANCE MAY ALSO PROVIDE FOR AN ACTUARIALLY APPROPRIATE REDUCTION IN PREMIUM CHARGES FOR BODILY INJURY LIABILITY, PROPERTY DAMAGE LIABILITY, PERSONAL INJURY PROTECTION, MEDICAL PAYMENTS AND COLLISION COVERAGE WITH RESPECT TO AUTOMOBILES EQUIPPED WITH AN AUTOMO- TIVE SAFETY MONITORING DEVICE. (1) FOR THE PURPOSES OF THIS SUBSECTION: (A) (I) "AUTOMOTIVE SAFETY MONITORING DEVICE" SHALL MEAN A TRACKING DEVICE, GLOBAL POSITIONING SYSTEM RECEIVER OR EVENT DATA RECORDER THAT IS INSTALLED ON AN AUTOMOBILE THAT ALLOWS A DRIVER OR A MINOR CHILD'S PARENT OR GUARDIAN TO MONITOR VEHICLE SPEED, ACCELERATION OR BRAKING PATTERNS, DISTANCE OR DIRECTION TRAVELED, THE NUMBER OF PASSENGERS IN SUCH AUTOMOBILE, WHETHER PASSENGERS ARE WEARING SEAT BELTS, THE LOCATION OF THE AUTOMOBILE OR OTHER SAFETY INDICIA WHEN SUCH AUTOMOBILE IS BEING OPERATED BY AN AUTHORIZED MINOR OPERATOR. (II) SUCH DEVICE NEED NOT BE PERMANENTLY INSTALLED BUT MUST HAVE THE CAPABILITY TO ACCURATELY MONITOR THE OPERATION OF THE VEHICLE AND NOTIFY PARENTS OR GUARDIANS OF THE LOCATION OF SUCH AUTOMOBILE OR OF UNSAFE VEHICULAR MOVEMENTS THAT ARE OCCURRING WHILE SUCH VEHICLE IS UNDER THE CONTROL OF A MINOR VEHICLE OPERATOR.
(III) SUCH DEVICE MAY INCLUDE A REMOVABLE DEVICE OR CHIP WHICH INTER- FACES WITH THE AUTOMOBILE'S ONBOARD DIAGNOSTIC SYSTEM PORT AND RECORDS DATA FROM THE MANUFACTURER'S EVENT DATA RECORDER; PROVIDED, HOWEVER, THAT SUCH DEVICE HAS THE CAPACITY TO ACCURATELY MONITOR THE OPERATION OF THE AUTOMOBILE. (B) "MINOR CHILD" SHALL MEAN A PERSON UNDER THE AGE OF TWENTY-TWO YEARS WHO HOLDS A LICENSE TO OPERATE A MOTOR VEHICLE. (2) THE SUPERINTENDENT SHALL, IN CONSULTATION WITH THE COMMISSIONER OF MOTOR VEHICLES, PROMULGATE RULES AND REGULATIONS TO ESTABLISH QUALIFICA- TIONS AND STANDARDS FOR THE APPROVAL, UTILIZATION AND INSTALLATION OF AUTOMOTIVE SAFETY MONITORING DEVICES. (3) NOTHING IN THIS SUBSECTION SHALL BE CONSTRUED TO PREVENT AN AUTO- MOBILE INSURER FROM PROVIDING ACTUARIALLY APPROPRIATE REDUCTIONS IN PREMIUM CHARGES FOR BODILY INJURY LIABILITY, PROPERTY DAMAGE LIABILITY, PERSONAL INJURY PROTECTION, MEDICAL PAYMENTS AND COLLISION COVERAGE FOR COMMERCIAL AUTOMOBILE INSURANCE POLICIES TO ANY OTHER INSURED WHOSE AUTOMOBILE IS EQUIPPED WITH AUTOMOTIVE SAFETY MONITORING DEVICES. 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 all policies issued, renewed, modified, altered or amended on or after such date; provided that any and all rules and regulations and any other measures necessary to implement any provision of this act on its effec- tive date may be promulgated and taken on or before such effective date.

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