Referred to the Committee on Financial Services, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
The PAID Act would ban auto insurance companies from using certain non-driving factors to set rates or determine eligibility for coverage. Specifically, insurers would be prohibited from considering education level, occupation, employment status, home ownership, credit scores, ZIP code, marital status, gender, previous insurance history, and consumer reports when pricing premiums or deciding coverage. The bill affects all private passenger auto insurers and their affiliate companies nationwide. Enforcement would be handled by the Federal Trade Commission, with civil penalties of at least $2,500 per violation, and consumers would also have the right to sue for damages and attorney's fees. Insurers must submit reports to the FTC every two years demonstrating that their rating practices do not discriminate based on protected characteristics like race or gender, and all underwriting rules must be made publicly available rather than kept as trade secrets. The law takes effect one year after passage.
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