The New York Department of Financial Services enacted new regulations this week that are aimed to prevent discrimination in auto insurance based upon education or employment. The sticky point is that many underwriters find this data to be predictive of losses. These two criteria will be generally prohibited from use in establishing initial tier placement, tier movement or premium rate for private passenger automobile insurance in New York.
The DFS left the door open to insurers to prove that the use of these two criteria would not result in unfairly discriminatory pricing. In the case of occupation, this means showing that a particular line of employment has a reasonable relationship to loss without reference to becoming unemployed or income. Insurers have 180 days to comply; the regulation will become effective 90 days after publication in the State Register and provides 90 days to amend multi-tier rating systems.
One unanswered question is whether the NYDFS may suggest that not marketing to certain populations based upon education or employment will result in discriminatory treatment. It will be important to look for clues to the use of this approach.
Elizabeth Retersdorf authored an article, "Copyright Registration Ruling Creates Insurance Risks," for Law360.
Day Pitney White Paper
On September 20, Susan Huntington presented during an educational call-in discussion, "Insurance and Coverage Risk Management Approaches to Address the Opioid Crisis," for the American Health Lawyers Association (AHLA).
On March 8, Bill Goddard will be speaking on "Lessons Learned from ERM, ORSA and Corporate Governance: Identifying and Remedying Weaknesses in Your Company's Risk and Capital Frameworks" at the 14th National Forum on Insurance Regulation, a conference presented by the American Conference Institute (ACI) to be held in New York.
On February 9, Bill Goddard will be speaking on a panel, titled "You've Got to Come Back with Me to The Future: An Ethics Discussion," at the 2018 International Association of Insurance Receivers (IAIR) Insurance Resolution Workshop to be held in Scottsdale, Arizona.
David Doot, Steven Cash and James Blackburn, IV authored an article, "Risk and Opportunity with the Industrial Internet of Things," which was published in the July-August 2019 issue of The Journal of Robotics, Artificial Intelligence & Law.
Day Pitney Press Release
Day Pitney partner Chase Rogers, former Chief Justice of the Connecticut Supreme Court, was featured in an article, "Retired Judges Establish Fund To Provide Lawyers For Immigrant Families," published by the Hartford Courant.
Chase T. Rogers, former Chief Justice of the Connecticut Supreme Court, was recognized by the Connecticut Council on Freedom of Information (CCFOI) for bringing greater openness to the state's court system.
On May 15, Chase T. Rogers, former Chief Justice of the Connecticut Supreme Court, received the 2018 John M. Bailey Award for Public Service at the Hartford County Bar Association (HCBA) Annual Meeting, which was held at the Bond Ballroom in Hartford, CT.