Bill > HR3664

This bill, known as the Prohibit Auto Insurance Discrimination Act (PAID Act), aims to prevent private passenger automobile insurers from using various income-related and personal factors to determine insurance rates and eligibility. Specifically, the bill prohibits insurers from considering factors such as gender, education level, occupation, employment status, home ownership, ZIP code, credit score, marital status, and previous insurance history when setting rates or determining insurance coverage. The legislation requires insurance companies to submit biennial reports to the Federal Trade Commission (FTC) demonstrating that their marketing, underwriting, and rating practices do not disparately impact customers based on protected characteristics like race, religion, or sexual orientation. Insurers would be required to make their underwriting rules and rate filings publicly available and could face significant penalties for violations, including civil penalties of at least $2,500 per violation. Consumers and state attorneys general would have the right to take legal action against insurers who violate the act, with potential damages including actual damages, punitive damages, and attorneys' fees. The bill recognizes that current insurance industry practices often result in higher rates for lower-income drivers and seeks to create a more equitable system of automobile insurance pricing. The act would take effect one year after its enactment and does not override state laws unless those laws are inconsistent with its provisions.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/3664/all-info