Summary

Bans private passenger auto insurers from using a set of personal factors (like income proxies such as education, occupation, credit score, and ZIP code) to decide eligibility or premiums, requires public disclosure of underwriting and rate filings, and forces insurers to report whether their marketing, underwriting, claims or algorithms have unfair disparate impacts on protected groups to the Federal Trade Commission (FTC). The FTC gets enforcement authority (including rulemaking and minimum civil penalties), consumers may sue for willful or negligent violations, and State insurance and consumer‑privacy laws remain in effect except where directly inconsistent; the law takes effect one year after enactment.

Key Points

• Bans insurers from using specified personal characteristics and common income proxies (education, occupation, credit score, ZIP code) in auto underwriting and pricing.
• Requires insurers to report to the FTC whether marketing, underwriting, claims, fraud investigations, or algorithms cause unfair or disparate impacts on protected groups.
• Makes underwriting rules and rate filings public to increase transparency of insurer decision‑making.
• Grants the FTC rulemaking and enforcement authority, treats violations as unfair/deceptive acts, and sets a minimum civil penalty of $2,500 per violation.
• Creates a private right of action for consumers for willful or negligent violations, including damages and attorneys’ fees.
• Preserves State consumer‑privacy, identity‑theft, and insurance regulation laws except to the extent they conflict with this Act.
• Provides an affirmative defense if an insurer can show reasonable compliance procedures were in place.
• Defines key terms (affiliate, consumer report, credit score, private passenger automobile) and references existing federal law and Census definitions.
• Takes effect one year after enactment to allow time for rulemaking and industry compliance.

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