The Property Casualty Insurers Association of America (PCI) asked the governor to veto the legislation because it would have eliminated an actuarially justified tool for assessing auto insurance rates. According to the PCI, the loss of this tool would have increased rates for New York consumers.
“We applaud the Governor’s decision to veto this unnecessary legislation that would have had the unintended consequence of increasing the cost of auto insurance for the very consumers it sought to protect,” stated Paul Magaril, regional manager and counsel for PCI. “We particularly appreciate the fact that the Governor recognized that the bill would have eliminated a useful and predictive tool for assessing credit scores and that consumers are protected by current law and industry practices that ensure that they are not penalized for shopping for the best loan rates and terms.”
In addition, the National Association of Mutual Insurance Companies (NAMIC) also wrote to the Governor Spitzer requesting that he veto the proposal. “This veto protects insurers’ ability to use valid and predictive information,” said Paul Tetrault, NAMIC’s state affairs manager for the Northeast U.S. “If this legislation had been enacted, it could have increased the cost and decreased the availability of coverage.”