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H.R. 3664: Prohibit Auto Insurance Discrimination Act

This bill, known as the Prohibit Auto Insurance Discrimination Act, aims to restrict private passenger automobile insurance companies from using certain factors related to consumers when determining insurance rates and eligibility. Here’s a summary of the key components:

Purpose of the Bill

The main goal of this legislation is to eliminate the use of income proxies in auto insurance underwriting and rating processes, which is believed to unfairly disadvantage lower-income individuals. This includes prohibiting insurers from using factors that are tied to a person’s socio-economic status to influence their insurance premiums.

Prohibited Factors

The following factors are explicitly prohibited from being used by private passenger automobile insurers to determine eligibility or set insurance rates:

  • Gender
  • Level of education
  • Occupation
  • Employment status
  • Home ownership status
  • ZIP Code or adjacent ZIP Codes
  • Census tract
  • Marital status
  • Credit score or credit-based insurance score
  • Consumer report
  • Previous insurer
  • Prior purchase of insurance from the insurer

Reporting Requirements

Insurers would be required to report to the Federal Trade Commission (FTC) every two years, providing information to demonstrate that their business practices do not discriminate against consumers based on race, gender, or other specified characteristics.

Transparency and Public Information

Under this bill, all underwriting rules and rate filings used in private passenger automobile insurance must be made available for public inspection, ensuring transparency in how rates are determined.

Liability and Enforcement

Any insurer found violating the regulations could face civil penalties and be held liable to consumers for damages. The FTC would enforce compliance, with penalties starting at $2,500 per violation. Consumers would also be able to take legal action against insurers for willful or negligent violations of the law.

Exemptions and State Laws

The bill clarifies that it does not exempt insurers from complying with state laws regarding the collection and use of consumer information or address issues of identity theft.

Effective Date

If enacted, the provisions of this Act would take effect one year after its enactment.

Relevant Companies

  • None found

This is an AI-generated summary of the bill text. There may be mistakes.

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Sponsors

3 bill sponsors

Actions

2 actions

Date Action
May. 29, 2025 Introduced in House
May. 29, 2025 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.

Corporate Lobbying

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Potentially Relevant Congressional Stock Trades

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