Requires insurance carriers to provide access to underwriting models or granular claim data to the department of financial services to evaluate underwriting practices and risk assessment methodologies.
Summary
This bill would add a new section to the New York Insurance Law requiring insurance carriers authorized to do business in the state to give the Department of Financial Services access, upon request of the superintendent, to their underwriting models. The bill defines an underwriting model broadly to include any algorithm, formula, or structured methodology used to assess risk, set premiums, or determine eligibility for coverage.
If a carrier cannot provide the underwriting model itself, it must instead provide granular claim data sufficient for the department to evaluate underwriting practices and risk-assessment methods. The bill also requires that any information shared be kept confidential and used only for regulatory purposes. It would take effect 90 days after becoming law.
Impact
The bill would expand the Department of Financial Services’ oversight authority by giving regulators direct access to carrier underwriting tools or, alternatively, detailed claim-level data. This would affect insurers operating in New York by creating a new compliance obligation and by exposing underwriting practices to regulatory review, with noncompliance treated as a violation subject to penalties under Insurance Law section 109, including fines and possible suspension or revocation of license.
Sentiment
Because there are no recorded committee transcripts or votes in the provided materials, there is no documented legislative debate or recorded sentiment to assess. Based on the text alone, the bill appears to reflect a regulatory and consumer-protection approach aimed at increasing transparency in insurance underwriting and risk assessment.
Contention
No specific points of contention are documented in the provided record. Potential areas of dispute, based on the bill’s structure, would likely include insurer concerns about confidentiality, proprietary trade secrets, compliance burden, and the scope of DFS access, while supporters would likely emphasize regulatory transparency, oversight of algorithmic underwriting, and the department’s ability to detect unfair or discriminatory practices.
Underwriting and Rate Risking; use of credit information and credit scores in underwriting, rating risks, adverse actions, or certain other actions by insurance companies; prohibit
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Regulates property insurers to limit underwriting and investment in fossil fuel projects, requires climate risk reporting and emissions disclosures, and aligns insurance practices with science-based climate targets.
Regulates property insurers to limit underwriting and investment in fossil fuel projects, requires climate risk reporting and emissions disclosures, and aligns insurance practices with science-based climate targets.
Creates the child-serving provider liability joint underwriting association to provide a joint underwriting association to provide liability insurance coverage for eligible child serving providers.