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Bill

S 4131

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

2025 Regular Session Introduced by Joe Addabbo and 4 co-sponsors

Summary of S 4131: Limiting Use of Credit Scores in Auto Insurance Premiums Main Purpose and IntentThis bill directs the New York State Superintendent of Financial Services to prom

REFERRED TO INSURANCE
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Bill Summary · S 4131

Summary of S 4131: Limiting Use of Credit Scores in Auto Insurance Premiums

Main Purpose and Intent

This bill directs the New York State Superintendent of Financial Services to promulgate rules and regulations that would limit the use of credit scores by automobile insurance companies when determining insurance premiums. The goal is to reduce the impact of credit score information on the affordability of auto insurance for consumers.

Key Provisions

  • Requires the Superintendent of Financial Services to develop and implement new regulations on the use of credit scores in setting auto insurance rates
  • Mandates that these new regulations must "limit the use of credit scores" by insurance providers when calculating premiums
  • Prohibits insurance companies from using credit score as the sole factor in determining auto insurance rates
  • Requires that any use of credit score information must be "directly related to the risk of loss" for the insurance provider

Affected Parties

  • Automobile insurance consumers in New York, who may see reduced impact of their credit scores on their insurance premiums
  • Auto insurance companies doing business in New York, who will need to adjust their rating models to comply with the new regulations

Procedural and Timeline Aspects

  • This bill was introduced in the New York State Senate on February 10, 2025 and has been referred to the Insurance Committee
  • If enacted, the bill would direct the Superintendent of Financial Services to develop and implement the new regulations within a specified timeframe, likely 6-12 months
  • The bill references several prior-session bills on related topics, indicating this is part of an ongoing legislative effort to address the use of credit scores in insurance

Overall, this bill aims to make automobile insurance more affordable for New York consumers by limiting the insurance industry's reliance on credit score information when setting rates. By requiring new regulations from the state's financial regulator, the bill seeks to reduce the disparate impact that credit-based pricing can have on certain populations.

Compiled from official sources — confirm details with the bill’s official record.

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