Bill
SD 2147
The bill would require the DOI to issue recommendations shaping when, how, and with what penalties drone use by insurers in underwriting and pricing may occur.
Status and basics
- Bill number: SD 2147 (Senate Docket No. 2147)
- Title: An Act relative to the use of drones by insurance companies
- Sponsor: Brendan P. Crighton
- Introduced: February 27, 2025
- Legislative actions: Referred to the Committee on Financial Services (2025-02-27); House concurred (same date)
- Current status: House concurred (proposed bill)
What the bill would do
- Add a new section (Section 231) to Chapter 175 of the General Laws.
- The core purpose is to regulate how insurance companies may use drones in evaluating policyholders’ eligibility or premium pricing, by guiding the regulatory framework through the Division of Insurance (DOI).
Key provisions
- Definitions:
- “Drone” means any remotely piloted aircraft or hovercraft.
- “Policyholder” includes anyone insured by an insurance company or anyone attempting to purchase insurance from a company.
- Regulatory action by DOI:
- The Division of Insurance must issue recommendations for regulating the use of drones by insurance companies when determining policyholder eligibility or premium pricing.
- The recommendations are to cover at least:
- Notification requirements: when policyholders must be notified about the use of drones in underwriting or pricing.
- Consent requirements: whether and how policyholders must consent to drone use for underwriting or pricing decisions.
- Penalties: potential penalties for companies that illegally or improperly use drones.
- Scope: Applies to actions by insurers related to determining eligibility and setting premium prices for policyholders.
Who is affected
- Insurance companies operating in Massachusetts that use drones for underwriting or pricing activities.
- Policyholders or prospective policyholders who could be subjected to drone-based underwriting or pricing.
- The Division of Insurance, which would issue and oversee the recommended regulatory framework.
Timing and implementation notes
- The bill directs the DOI to issue recommendations; it does not establish specific rules or penalties within the statute itself. Actual standards, enforcement mechanisms, and effective dates would depend on subsequent regulatory action by the DOI and potential further legislative action.
Potential impact and considerations
- Consumer protections: Emphasizes transparency (notification) and consent, aligning drone use with consumer rights.
- Oversight: Introduces formal regulatory guidance, potentially reducing misuse or privacy concerns related to drone data in underwriting.
- Implementation: As recommendations rather than prescriptive rules, the practical impact depends on how the DOI translates these recommendations into enforceable regulations.
Overall, the bill seeks to create a structured, consumer-protective framework for the use of drone technology by insurance companies in determining eligibility and pricing, via DOI-guided recommendations.
Compiled from official sources — confirm details with the bill’s official record.
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