NY DFS Proposes New Reg for Auto Insurers
The New York State Department of Financial Services (DFS) has released a proposed regulation aimed at prohibiting the use of education and occupation as underwriting criteria. The proposal comes after a DFS investigation found some auto insurers in New York use a driver’s education level and/or occupational status as an underwriting factor, landing those drivers in a less-favorable initial tier placement. According to a media release issued by Governor Andrew Cuomo, under the proposed regulation auto insurers would not be able to use educational and occupational status in their insurance underwriting unless they can clearly demonstrate a plausible relationship to the risk of loss. The proposed regulation is subject to a 45-day notice and public comment period.
