S 5342: Provides for the use of telematics or usage-based insurance for private passenger or commercial automobile insurance or policies in certain circumstances.

  
  STATE OF NEW YORK ________________________________________________________________________ 5342 2025-2026 Regular Sessions  IN SENATE February 20, 2025 ___________ Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law, in relation to the use of telematics systems by insurers The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The insurance law is amended by adding a new section 2354 2 to read as follows: 3 § 2354. Use of telematics. (a) As used in this section, "telematics" 4 or "usage-based insurance" means utilizing data collected relating to 5 any of the following regarding a vehicle or driver using vehicle 6 systems, recording sensors, or a telecommunications device for insurance 7 operations including pricing, underwriting, claims, and customer 8 service: 9 (1) Vehicle speed, location, mileage, and operating hours; 10 (2) Driver acceleration, braking, and cornering habits; 11 (3) Telephone screen touch-engagement, including but not limited to, 12 handheld phone call and text usage during vehicle operation; 13 (4) Road and weather conditions; 14 (5) Engine diagnostics; 15 (6) Advanced driver assistance systems (ADAS), including motorized 16 seat belts; and 17 (7) Any other data point related to the use and operation of the 18 insured vehicle that has been filed with and approved by the superinten- 19 dent. 20 (b) An insurer that issues, sells, or delivers private passenger or 21 commercial automobile insurance or policies in the state may, with the 22 consent of the participating driver, or the named insured if the partic- 23 ipating driver is a minor, collect telematics data: 24 (1) For establishing an insurance premium for the policy that insures 25 that vehicle and/or operator; 26 (2) For claims settlement purposes, including investigation of fraud; 27 (3) For rate filing purposes using aggregated telematics data; and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04346-01-5 
 S. 5342 2 1 (4) For other customer service purposes, including but not limited to: 2 safety, including crash detection; risk mitigation, including severe 3 weather warnings; additional insurance protection; and convenience. 4 (c) With respect to private passenger motor vehicle insurance an 5 insurer shall not require an applicant or a policyholder to participate 6 in a program that measures the operation of an insured vehicle as a 7 condition for pricing or underwriting a private passenger motor vehicle 8 insurance risk unless the insurer: 9 (1) only offers private passenger motor vehicle insurance products 10 that require insureds to participate in a program that measures the 11 operation of an insured vehicle, and discloses such requirement to: 12 (i) an applicant at the time of application; and 13 (ii) a policyholder at the time of renewal; and 14 (2) includes the information required to be disclosed in paragraph one 15 of this subsection in any advertising materials for the insurance 16 products offered by the insurer. 17 (d) (1) This section shall not apply to a premium increase for a driv- 18 er or vehicle due to a telematics program that measures driving behavior 19 during the current policy period. 20 (2) Notice to a participating driver, or named insured if the partic- 21 ipating driver is a minor, of a premium increase resulting from the use 22 of telematics data shall be made pursuant to regulations promulgated by 23 the superintendent in accordance with 15 U.S.C. § 1681m. 24 (e) Any premium increase established pursuant to subsection (d) of 25 this section shall be made pursuant to the provisions of subsection (b) 26 of section two thousand three hundred five of this chapter. 27 (f) An insurer may share data obtained through telematics: 28 (1) With the named insured; 29 (2) With a person, natural or legal, other than the named insured only 30 if the named insured provides consent; or 31 (3) In accordance with a court order or subpoena. 32 (g) Any insurer that offers the use of telematics or usage-based 33 insurance, or any such program that measures the operation of an insured 34 vehicle during the current policy period, shall do so in accordance with 35 the provisions of article twenty-six of this chapter applicable to 36 private passenger auto insurance. 37 (h) The superintendent shall have the power to promulgate, from time 38 to time, such regulations, not inconsistent with the provisions of this 39 chapter, as may be appropriate to carry out the provisions of this 40 section and, insofar as applicable to this section, other provisions of 41 this chapter. 42 § 2. Section 2324 of the insurance law is amended by adding a new 43 subsection (c-1) to read as follows: 44 (c-1) This section shall not prohibit any insurer from offering 45 participation in a loss prevention program that promotes and incentiv- 46 izes safe driving behavior, with rewards, including through the use of 47 telematics as defined under section two thousand three hundred fifty- 48 four of this article, so long as participation in such program is 49 offered both to members of the general public and to the insurer's poli- 50 cyholders. 51 § 3. This act shall take effect on the ninetieth day after it shall 52 have become a law. Effective immediately, the addition, amendment and/or 53 repeal of any rule or regulation necessary for the implementation of 54 this act on its effective date are authorized to be made and completed 55 on or before such effective date.