Bill > S04131

This bill aims to address the use of credit scores in determining automobile insurance premiums in New York by directing the superintendent of financial services to review and potentially prohibit this practice. The legislature recognizes that using credit scores to calculate insurance rates can create unpredictable premium fluctuations for consumers and that many people may be unaware of changes in their credit rating that could impact their insurance costs. The bill requires the superintendent to conduct a comprehensive review of current actuarial methods, specifically examining whether credit scores are being used to assess insurance risk. If credit scoring methods are found to be in use, the superintendent must create new rules and regulations that eliminate these methods from premium calculations. Conversely, if credit scoring is not currently used, the superintendent must still establish regulations to prevent its future implementation. The bill highlights that while insurance scoring has been a traditional method of evaluating risk based on statistical correlations between financial management and potential insurance claims, it should not be a decisive factor in setting rates. The new regulations would take effect 120 days after the bill becomes law, with immediate authorization for developing the necessary regulatory changes.

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https://www.nysenate.gov/legislation/bills/2025/S4131