Search
 

N.Y. to auto insurers: Don't use education or occupation in setting rates

N.Y. State proposes a regulation to prohibit insurers from using education levels or occupational status in setting auto insurance rates, which are seen as 'unfairly discriminatory.'

By Rosalie L. Donlon | Updated on May 18, 2017
Insurers use a variety of risk factors in setting auto premiums. N.Y. State wants them to stop using education level and occupational status. (Photo: Shutterstock)

On May 16, Gov. Andrew M. Cuomo announced a proposed regulation to protect New Yorkers from what he sees as excessive and unfairly discriminatory auto insurance rates.

The Department of Financial Services (DFS) regulation, issued after an extensive investigation, would prohibit insurers from using an individual’s occupational status or educational level as factors in setting rates, unless the insurer demonstrates to the satisfaction of the Superintendent of Financial Services that the use of these factors does not result in rates that are “unfairly discriminatory.”

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.