N.Y.: PIA-priority ‘bait and switch’ bill introduced in Assembly

February 24, 2023

Another day, another PIANY legislative priority has been introduced. Assemblyman David Weprin, D-24, the new chair of the Assembly Insurance Committee, introduced A.4668, which would restrict the harmful “bait and switch” practice in personal auto insurance, on Feb. 22, 2023.

Bait and switch is the colloquial term used to describe when an insurance company verifies an insurance applicant’s driving history after the applicant has paid the premium on a personal auto policy.

Often, a person’s driving history is used by insurance companies as an underwriting factor in setting premium. Verifying an applicant’s driving history after the policy is bound and premium is paid can have a significant impact on premium. This can lead to a situation in which a policyholder’s premium is increased substantially shortly after the policy is bound. In many cases, policyholders have no idea when they agree to the terms and the price of the policy, that the policy could be rerated, and premiums could increase.

Under the terms of the legislation, if an insurance company uses driving history as a rating or underwriting factor, it is required to verify the driving history of the applicant, as well as any named-drivers listed on the insurance application, prior to binding the policy, or taking any premium. If a representative of the insurance company fails to verify the driving history prior to binding, an adjustment of premium would be prohibited until the policy is renewed.

The bill has been referred to the Assembly Insurance Committee for consideration. PIANY strongly supports this legislation and thanks Chairman Weprin for his sponsorship of the bill.

Get involved

If you want to get involved with PIANY’s legislative and advocacy work, there are many ways to engage with the association:

Bradford J. Lachut, Esq.
PIA Northeast | + posts

Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.

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