DFS Announces Final Regulation and Agreements With Two Major Insurers to Protect New York Drivers From Unfairly Discriminatory Auto Insurance Rates
Financial Services Superintendent
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The use of education and occupation in determining insurance rates can penalize drivers without college degrees or who work in low-wage jobs or industries. The result is that drivers with higher education and income pay less for auto insurance with no evidence that they are better drivers.
DFS conducted a multi-year investigation, which revealed that some, but not all, insurers in
Under the final regulation, auto insurers are now prohibited from using drivers' occupational status or education level as a factor in initial tier placement, unless the insurer demonstrates, to the satisfaction of the Superintendent of Financial Services, that its use of occupational status or educational level attained in initial tier placement or tier movement does not result in a rate that violates Insurance Law provisions ensuring the public welfare by regulating insurance rates so they are not excessive, inadequate, or unfairly discriminatory.
The final regulation provides 180 days for insurers that had been using education level and occupational status in initial tier placement and tier movement and have not already reached agreements with DFS in compliance with the regulation to amend their multi-tier rating programs and tier movement.
A copy of the final regulation can be found here (http://www.dfs.ny.gov/insurance/r_finala/2017/rf150a2txt.pdf).
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