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Prohibits the use of external consumer data and information sources being used when determining insurance rates; provides that no insurer shall unfairly discriminate based on race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, or gender…
In one paragraph
New York's A 4427 would add Insurance Law § 2403-a barring insurers from unfairly discriminating on protected characteristics and, under Superintendent rules, from using external consumer data, algorithms or predictive models in ways that do. The Superintendent would run a stakeholder process and adopt rules requiring insurers to disclose data sources, keep a risk framework and file officer attestations; commercial lines are largely exempt. Would take effect on the 180th day after becoming law. Referred to Insurance February 4, 2025 and January 7, 2026; it has not passed either chamber.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None yet: the bill is pending. If enacted, insurers using external data, algorithms or predictive models in marketing, underwriting, pricing or claims would face disclosure, testing and attestation rules set by the Superintendent.
Key provisions
- Adds Insurance Law § 2403-a; no insurer shall unfairly discriminate based on race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity or gender expression
- Insurers may not use external consumer data and information sources, or algorithms or predictive models using them, to unfairly discriminate, pursuant to Superintendent rules
- Superintendent must hold public stakeholder meetings by insurance type, then adopt rules requiring insurers to disclose data sources and use, maintain a risk management framework, assess results and provide officer attestations
- Superintendent may examine insurers' use of data, algorithms and models; Department materials are confidential and privileged; annual report to the Governor and legislative leaders
- Does not apply to title insurance or surety bonds, and excludes commercial policies except business owners' or commercial general liability policies with annual premiums of $10,000 or less
- Would take effect on the 180th day after becoming law
Latest legislative action
Jan 7, 2026. referred to insurance
Sponsors
| Name | Role |
|---|---|
| Brian Cunningham D | Primary |
| DENDEKKER | Primary |
| LAVINE | Primary |
| Phil Steck D | Primary |
| RA | Primary |
Topics and industries
Related topics
Affected industries
This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error