An Act Concerning Mileage-based Automobile Insurance Policies.
Impact
The implication of SB00017 on state laws is significant, as it would amend existing regulations related to automobile insurance. By adopting verified actual mileage as a basis for underwriting and pricing, the bill aims to offer consumers potentially fairer insurance rates tailored to their specific driving habits. Additionally, it sets parameters for insurers regarding how they may adjust premiums, which could lead to greater stability in pricing and benefit those who drive fewer miles.
Summary
SB00017, also known as the Act Concerning Mileage-based Automobile Insurance Policies, seeks to establish regulations and standards for private passenger nonfleet automobile insurance policies that utilize verified actual mileage as a factor in underwriting and pricing. This bill aims to provide more precise methods for determining premiums based on the actual mileage driven by the insured vehicles, which represents a shift from traditional estimated mileage models. The act mandates that the insurance commissioner must create statewide standards for the verification of mileage and reporting requirements for both insurers and policyholders, thereby introducing more transparency into the pricing process.
Contention
While proponents argue that the bill will lead to more equitable insurance solutions, there are concerns regarding the complexities involved in tracking and reporting actual mileage. Critics of mileage-based insurance point out potential challenges such as privacy concerns related to monitoring vehicle usage and the administrative burden this may impose on both consumers and insurance providers. Furthermore, they argue that such a model could inadvertently disadvantage those with less consistent driving patterns or access to technology for mileage verification.
An Act Concerning Insurance Market Conduct And Insurance Licensing, The Insurance Department's Technical Corrections And Other Revisions To The Insurance Statutes And Captive Insurance.