In 2023, PIANY fiercely advocated for passage of legislation that would increase consumer protections during the automobile insurance underwriting process. PIA was successful in its efforts when New York Gov. Kathy Hochul signed into law S.5764-B, which takes aim at the harmful bait-and-switch tactics in the insurance community.
Bait and switch refers to a practice of certain personal automobile carriers to bind coverage policies based on an initial quote and questionnaire with the insured, only to raise the premium following a check of the insured’s driving history.
Signage with caveats
While the governor signed bait-and-switch bill into law, she did not do so unequivocally. The bill was signed with the understanding that when the Legislature returned to session in January, its members would pass additional legislation making changes to the new law. This is referred to as a chapter amendment.
An updated law
Those chapter amendments have now passed both the state Senate and Assembly.
Under S.8018, insurance carriers only will be required to run a motor vehicle report for an individual’s New York state driving history. In addition, the chapter amendments would remove a requirement that MVRs be run at the time of policy renewal.
The legislation will be sent to the governor for her consideration. Given the governor’s action last year, it is assumed that she will sign the legislation.
Learn more about bait and switch here.
Bradford J. Lachut, Esq.
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.
