Bill > S00553

This bill amends the New York Insurance Law to regulate the use of telematics systems, which are technologies that monitor, store, and transmit information about vehicle location, driver behavior, engine performance, and vehicle activity. The key provisions of the bill are: 1) It defines telematics systems and includes third-party developers or vendors of such systems in the definition of "rate service organization" under the Insurance Law. 2) It requires insurers and third-party telematics providers to: (a) explain how the factors used in their models/algorithms are connected to risk, (b) publicly disclose their scoring methodologies, (c) report on testing done to ensure the systems do not result in discrimination against protected classes, and (d) allow consumers to access the data collected by the telematics systems. 3) It prohibits the use of telematics data for any purpose other than underwriting and rating decisions, and prohibits unfair discrimination based on protected characteristics like race, sex, or disability. 4) It authorizes the Superintendent of Insurance to promulgate rules and regulations to administer and enforce these new requirements.