,,ii  #aaf? ,,congress  #b;d ,session   
,s4 #dgee  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #bi1         
#bjbj,mr4 ,book] introduc$ ! foll[+     
bill2 :i* 0 read twice & ref]r$ to !    
,committee on ,bank+1 ,h\s+1 & ,urban   
,affairs  ,a ,,bill  ,to prohibit       
private pass5g] automobile insur]s f us+
 c]ta9 income proxies to det]m9e        
insurance rates & eligibility4  #a4     
,%ort title ,?is ,act may be cit$ z !   
,prohibit ,auto ,insurance              
,discrim9ation ,act4  #b4 ,f9d+s        
,congress f9ds ! foll[+3 7#a7 ,private  
pass5g] automobile insurance companies  
are in/itutions :i* help spread risk (  
loss ov] a collective gr\p (            
policyhold]s4  7#b7 ,private pass5g]    
automobile insurance is m&at$ 9 all     
,/ates b ,new ,hamp%ire4 ,legal p5alties
 = op]at+ a vehicle )\t liability       
insurance 9 ^! ,/ates range f f9es1 to  
lic5se susp5sions or revocations1 to    
imprisonm5t4  7#c7 ,! private pass5g]   
automobile insurance indu/ry uses       

diff]5t v>iables to pr$ict ! ov]all co/s
 & risks ( driv]s4 ,! analysis & use (  
^! v>iables ultimately help ! automobile
 insur] set premium rates *>g$ to       
consum]s :i* ! automobile insur]        
det]m9es to be actu>ially support$4     
7#d7 ,a pure loss ratio1 a measurem5t ( 
pr(itability 9 insurance1 is def9$ z    
losses divid$ by premiums4 ,/ati/ical   
correlations betwe5 c]ta9 v>iables &    
pure loss ratios %\ld be int]pret$ to   
mean t ! select$ v>iable relates to     
pr(itability1 b n necess>ily to ! risk t
 an individual w get into an automobile 
accid5t4  7#e7 ,a gr[+ tr5d 9 ! private 
pass5g] automobile insurance indu/ry is 
to use income proxies = und]writ+ &     
rat+4 ,! use ( income proxies su* z a   
driv]'s education level1 occupation1    
employm5t /atus1 home own]%ip /atus1    
cr$it score1 consum] report1 previ\s    
insur]1 & prior pur*ase ( insurance by !
 indu/ry z v>iables t significantly     
influ5ce ! insurance premiums *>g$ to   
driv]s has become commonplace4 ,use ( ^!

 income proxies 9 ?is fa%ion results 9  
high] rates be+ *>g$ to l[] income      
driv]s :ile l[] rates are be+ *>g$ to ! 
m afflu5t driv]4  7#f7 ,! ,am]ican      
public is l>gely unaw>e t a p]son's     
education level1 occupation1 employm5t  
/atus1 home own]%ip /atus1 cr$it score1 
consum] report1 zip code1 c5sus tract1  
previ\s insur]1 & prior pur*ase (       
insurance may be significant factors us$
 to det]m9e eligibility = pref]r$ auto  
insurance rates reg>dless ( ! p]son's   
driv+ hi/ory4 ,z a result ( !           
individual's ineligibility = pref]r$    
rates1 ! driv]'s policy & rate w be only
 (f]$ f an affiliate company t has high]
 rates4  #c4 ,requirem5ts = private     
pass5g] automobile insur]s  7a7 ,use (  
c]ta9 factors & income proxies prohibit$
 ,x %all be unlawful = a private pass5g]
 automobile insur]1 or any ( its        
affiliate insur]s1 to take into         
consid]ation any ( ! factors describ$ 9 
subsection 7b7 relat+ to a consum] 9    
det]m9+ t consum]'s eligibility =       

automobile insurance or 9 calculat+ !   
rate = t consum]4  7b7 ,factors ,!      
factors ref]r$ to 9 subsection 7a7 are--
 7#a7 g5d]2  7#b7 level ( education2    
7#c7 occupation2  7#d7 employm5t /atus2 
7#e7 home own]%ip /atus2  7#f7 zip code 
or adjac5t zip codes2  7#g7 c5sus tract2
  7#h7 m>ital /atus2  7#i7 cr$it score  
or cr$it-bas$ insurance score2  7#aj7   
consum] report2  7#aa7 previ\s insur]2  
or  7#ab7 prior pur*ase ( insurance ( a 
consum] f t automobile insur]4  7c7     
,public availability ( in=mation ,all   
und]writ+ rules & rate fil+s = use by   
any private pass5g] automobile insur]   
%all be available = public inspection & 
may n be consid]$ propriet>y trade      
secret in=mation4  7d7 ,reasonable      
proc$ures ,to assure compliance ,no     
p]son %all be held liable = any         
violation ( ?is ,act if ! p]son %[s by a
 prepond]ance ( ! evid5ce t at ! "t ( ! 
alleg$ violation ! p]son ma9ta9$        
reasonable proc$ures to assure          
compliance ) ! provisions ( ?is ,act4   

7e7 ,rules ( con/ruction  7#a7 ,factors 
& me?ods influ5c+ premiums ,= ! purposes
 ( ?is ,act1 a violation ( subsection   
7a7 %all be consid]$ to h occurr$ :5ev] 
! consid]ation ( any ( ! factors        
describ$ 9 subsection 7b7 prev5ts !     
consum] f obta9+ insurance at ! l[e/    
rate available to ! consum] f a private 
pass5g] automobile insur] or any ( its  
affiliates4 ,actions consid]$ a         
violation ( su* subsection include !    
usage or consid]ation ( any su* factor  
result+ 9-- 7,a7 ! det]m9ation ( a      
consum]'s eligibility = automobile      
insurance or ! calculation ( ! rate = t 
consum]2  7,b7 an action :i* prev5ts a  
consum] f receiv+ c]ta9 rebates or      
disc\nts2  7,c7 an action :i* prev5ts a 
consum] f obta9+ insurance f an         
automobile insur] or any ( its affiliate
 companies2  7,d7 a d5ial1 cancellation1
 non-r5ewal1 or *ange 9 policy or       
cov]age t]ms2 or  7,e7 any o!r impact on
 a consum]'s premium = insurance4  7#b7 
,au?ority ( ,f$]al & ,/ate ag5cies ,no?+

 9 ?is ,act is int5d$ to affect !       
au?ority ( any ,f$]al or ,/ate ag5cy to 
en=ce a prohibition aga9/ unfair or     
deceptive acts or practices1 includ+ !  
mak+ ( false or mislead+ /atem5ts 9     
connection ) a cr$it or insurance       
transaction t is n initiat$ by !        
consum]4  #d4 ,en=cem5t  7a7 ,en=cem5t  
by ,f$]al ,trade ,commission  7#a7      
,unfair or deceptive acts or practices  
,a violation ( ?is ,act %all be treat$ z
 a violation ( a rule def9+ an unfair or
 deceptive act or practice "u section   
#ah7;a77#a77;,b7 ( ! ,f$]al ,trade      
,commission ,act 7#ae ,u4,s4,c4         
#eg;a7a77#a77;,b774  7#b7 ,p[]s (       
,commission ,! ,f$]al ,trade ,commission
 %all en=ce ?is ,act 9 ! same mann]1 by 
! same means1 & ) ! same jurisdiction1  
p[]s1 & duties z ?\gh all applicable    
t]ms & provisions ( ! ,f$]al ,trade     
,commission ,act 7#ae ,u4,s4,c4 #da et  
seq47 7 incorporat$ into & made a "p (  
?is ,act4 ,any p]son :o violates ?is    
,act %all be subject to ! p5alties &    

entitl$ to ! privileges & immunities    
provid$ 9 ! ,f$]al ,trade ,commission   
,act4  7#c7 ,am\nt ( p5alty ,not)/&+ !  
p5alties set =? 9 section #ah ( su*     
,act1 a p]son :o violates ?is ,act %all 
be liable = a civil p5alty ( n less ?an 
#b1ejj p] violation4  7#d7 ,regulations 
,! ,f$]al ,trade ,commission %all       
prescribe1 9 accordance ) section #eec (
 title #e1 ,unit$ ,/ates ,code1 su*     
regulations z are necess>y to c>ry out !
 purposes ( ?is ,act1 includ+           
regulations z may be necess>y or        
appropriate to adm9i/] & c>ry out !     
purposes & objectives ( ?is ,act1 & to  
prev5t evasions !re( or to facilitate   
compliance !re)4  7b7 ,actions by       
consum]s  7#a7 ,willful violations ,any 
private pass5g] automobile insur] :o    
willfully violates ?is ,act ) respect to
 any consum] is liable to t consum] 9 an
 am\nt equal to ! sum (-- 7,a7 any      
actual damages su/a9$ by ! consum] z a  
result ( ! failure2  7,b7 su* am\nt (   
punitive damages z ! c\rt may all[2 &   

7,c7 9 ! case ( any successful action to
 en=ce any liability "u ?is p>agraph1 ! 
co/s ( ! action toge!r ) reasonable     
attorneys' fees z det]m9$ by ! c\rt4    
7#b7 ,neglig5t violations ,any private  
pass5g] automobile insur] :o is neglig5t
 9 fail+ to comply ) any requirem5t     
impos$ "u ?is ,act ) respect to any     
consum] is liable to t consum] 9 an     
am\nt equal to ! sum (-- 7,a7 any actual
 damages su/a9$ by ! consum] z a result 
( ! failure2 &  7,b7 9 ! case ( any     
successful action to en=ce any liability
 "u ?is p>agraph1 ! co/s ( ! action     
toge!r ) reasonable attorneys' fees z   
det]m9$ by ! c\rt4  7#c7 ,attorneys'    
fees ,^u a f9d+ by ! c\rt t an          
unsuccessful plead+1 motion1 or o!r pap]
 fil$ 9 connection ) an action "u ?is   
subsection 0 fil$ 9 bad fai? or =       
purposes ( h>assm5t1 ! c\rt %all aw>d to
 ! prevail+ p>ty attorney's fees        
reasonable 9 relation to ! "w exp5d$ 9  
respond+ to ! plead+1 motion1 or o!r    
pap]4  7#d7 ,jurisdiction ( c\rts2      

limitation ( actions ,an action to en=ce
 any liability creat$ "u ?is subsection 
may be br\ght 9 any appropriate ,unit$  
,/ates di/rict c\rt1 )\t reg>d to !     
am\nt 9 controv]sy1 or 9 any o!r c\rt ( 
compet5t jurisdiction1 n lat] ?an !     
e>li] (-- 7,a7 #b ye>s aft] ! date (    
discov]y by ! pla9tiff ( ! violation t  
is ! basis = su* liability2 or  7,b7 #e 
ye>s aft] ! date on :i* ! violation t is
 ! basis = su* liability occurs4  7c7   
,actions by ,/ates  7#a7 ,9 g5]al ,9 any
 case 9 :i* ! attorney g5]al ( a ,/ate1 
or an (ficial or ag5cy ( a ,/ate1 has   
reason to believe t an int]e/ ( !       
resid5ts ( su* ,/ate has be5 or is      
?reat5$ or adv]sely affect$ by an act or
 practice 9 violation ( ?is ,act1 !     
,/ate1 z p>5s patriae1 may br+ a civil  
action on behalf ( ! resid5ts ( ! ,/ate 
9 an appropriate ,/ate c\rt or an       
appropriate di/rict c\rt ( ! ,unit$     
,/ates to-- 7,a7 enjo9 su* act or       
practice2  7,b7 en=ce compliance ) ?is  
,act2  7,c7 obta9 damages1 re/itution1  

or o!r comp5sation on behalf ( resid5ts 
( ! ,/ate2 or  7,d7 obta9 su* o!r legal 
& equitable relief z ! c\rt may consid] 
to be appropriate4  7#b7 ,notice ,be=e  
fil+ an action "u ?is subsection1 !     
attorney g5]al1 (ficial1 or ag5cy ( !   
,/ate involv$ %all provide to ! ,f$]al  
,trade ,commission a writt5 notice ( su*
 action & a copy ( ! compla9t = su*     
action4 ,if ! attorney g5]al1 (ficial1  
or ag5cy det]m9es t x is n feasible to  
provide ! notice describ$ 9 ?is p>agraph
 be=e ! fil+ ( ! action1 ! attorney     
g5]al1 (ficial1 or ag5cy %all provide   
writt5 notice ( ! action & a copy ( !   
compla9t to ! ,f$]al ,trade ,commission 
imm$iately ^u ! fil+ ( ! action4  7#c7  
,au?ority ( ,f$]al ,trade ,commission   
,on receiv+ notice "u p>agraph 7#b7 ( an
 action "u ?is subsection1 ! ,f$]al     
,trade ,commission %all h ! "r-- 7,a7 to
 int]v5e 9 ! action2  7,b7 ^u s int]v5+1
 to be he>d on all matt]s aris+ !re92 & 
7,c7 to file petitions = appeal4  7#d7  
,rule ( con/ruction ,= purposes ( br++ a

 civil action "u ?is subsection1 no?+ 9 
?is ,act %all be con/ru$ to prev5t an   
attorney g5]al1 (ficial1 or ag5cy ( a   
,/ate f ex]cis+ ! p[]s conf]r$ on !     
attorney g5]al1 (ficial1 or ag5cy by !  
laws ( su* ,/ate to conduct             
inve/igations1 adm9i/] oa?s &           
affirmations1 or compel ! att5dance (   
witnesses or ! production ( docum5t>y & 
o!r evid5ce4  #e4 ,relation to ,/ate law
 ,?is ,act does n annul1 alt]1 affect1  
or exempt any p]son subject to !        
provisions ( ?is ,act f comply+ ) ! laws
 ( any ,/ate ) respect to ! collection1 
di/ribution1 or use ( any in=mation on  
consum]s1 ! prev5tion or mitigation (   
id5tity !ft1 or ! regulation ( ! bus9ess
 ( insurance1 except to ! ext5t t ^?    
laws are inconsi/5t ) any provision (   
?is ,act1 & !n only to ! ext5t ( !      
inconsi/5cy4  #f4 ,def9itions ,= !      
purposes ( ?is ,act1 ! foll[+ def9itions
 apply3 7#a7 ,affiliate ,! t]m affiliate
 means an entity t1 directly or         
indirectly1 ?r\gh "o or m int]m$i>ies1  

controls1 is controll$ by1 or is "u     
common control ) ano!r entity4 ,=       
purposes ( ?is p>agraph1 ! t]m control  
means ! possession1 directly or         
indirectly1 ( ! p[] to direct or cause !
 direction ( ! managem5t & policies ( ! 
entity1 :e!r-- 7,a7 ?r\gh ! own]%ip (   
vot+ securities2  7,b7 by contract o!r  
?an a comm]cial contract = goods or     
non-managem5t s]vices2  7,c7 by contract
 = goods or non-managem5t s]vices :]e ! 
volume ( activity results 9 a reliance  
relation%ip2 or  7,d7 by common         
managem5t4  ,control %all be presum$ to 
exi/ if an entity & its affiliates      
directly or indirectly own1 control1    
hold ) ! p[] to vote1 or hold proxies   
repres5t+ #aj p]c5t or m ( ! vot+       
int]e/s ( an entity4  7#b7 ,automobile  
insur] ,! t]m automobile insur] means an
 insur] au?oriz$ to transact or         
transact+ automobile insurance1 motor   
vehicle insurance1 automobile or motor  
vehicle liability insurance1 or any     
simil> insurance bus9ess 9 ! ,unit$     

,/ates4  7#c7 ,c5sus tract ,! t]m c5sus 
tract means any small1 relatively       
p]man5t /ati/ical subdivision ( a c\nty1
 z us$ by ! ,unit$ ,/ates ,c5sus        
,bureau4  7#d7 ,consum] report ,! t]m   
consum] report has ! mean+ giv5 su* t]m 
9 section #fjc ( ! ,fair ,cr$it ,report+
 ,act 7#ae ,u4,s4,c4 #afha;a71 except t 
su* t]m does n include any communication
 to ! ext5t su* communication relates to
 ! driv+ hi/ory or place ( resid5ce ( a 
consum]4  7#e7 ,cr$it-bas$ insurance    
score ,! t]m cr$it-bas$ insurance score 
means a rat+ bas$ 9 :ole or 9 "p on a   
consum]'s cr$it in=mation us$ 9         
und]writ+ & rat+ ( consum]s t takes into
 acc\nt c]ta9 elem5ts ( an individual's 
cr$it hi/ory to pr$ict h[ likely su*    
individual is to h an insurance loss4   
7#f7 ,cr$it score ,! t]m cr$it score has
 ! mean+ giv5 su* t]m 9 section         
#fji7;f77#b7 ( ! ,fair ,cr$it ,report+  
,act 7#ae ,u4,s4,c4 #afha;g7f77#b774    
7#g7 ,employm5t /atus ,! t]m employm5t  
/atus means a consum]'s /atus z a curr5t

 full-"t employee1 "p-"t employee1      
employ$1 unemploy$1 und]employ$1 or any 
o!r su* designation :i* indicates a     
consum]'s "w /atus4  7#h7 ,home own]%ip 
/atus ,! t]m home own]%ip /atus ref]s to
 :e!r a consum] curr5tly owns any real  
prop]ty :i* may be us$ z a resid5ce4    
7#i7 ,level ( education ,! t]m level (  
education ref]s to ! highe/ grade level 
complet$ 9 a second>y s*ool or trade    
s*ool1 a pr(essional lic5sure or        
c]tification1 or ! highe/ und]graduate  
or graduate college degree obta9$4 ,su* 
t]m does n include ! completion ( a     
traffic safety c\rse or s*ola/ic        
a*ievem5t :ile enroll$ 9 a s*ool1       
college1 or univ]sity4  7#aj7           
,occupation ,! t]m occupation means a   
consum]'s curr5t lawful employm5t       
position 9 a c>e] or id5tifiable trade  
category4  7#aa7 ,private pass5g]       
automobile ,! t]m private pass5g]       
automobile means a #d-:eel motor        
vehicle1 :e!r own$ or leas$ to an       
individual or individuals1 & t is ( a   

private pass5g] or /ation wagon type1 or
 t is a motor vehicle ) a pickup body1 a
 deliv]y s$an1 a pass5g] van1 a sports  
utility vehicle1 or a panel truck or a  
camp] type vehicle1 & t-- 7,a7 is n us$ 
z a public or liv]y conveyance =        
pass5g]s2  7,b7 is n r5t$ to o!rs2  7,c7
 has a gross vehicle weight ( less ?an  
#ae1jjj p\nds2 &  7,d7 is n prim>ily us$
 9 ! c\rse ( an occupation1 pr(ession1  
or bus9ess ( a p]son o!r ?an f>m+ or    
ran*+4  ,su* t]m includes a motor       
vehicle own$ by a f>m family co-p>tn]%ip
 or f>m family corporation1 :i* is      
pr9cipally g>ag$ on a f>m or ran* &     
o!rwise meets ! def9ition conta9$ 9 ?is 
p>agraph4  #g4 ,effective date ,?is ,act
 %all take effect #a ye> aft] ! date (  
enactm5t ( ?is ,act4