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Prohibits the use of external consumer data and information sources being used when determining insurance rates; provides that no insurer shall unfairly discriminate based on race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, or gender expression; or use any external consumer data and information sources, as well as any algorithms or predictive models that use external consumer data and information sources, in a way that unfairly discriminates based on race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, or gender expression; makes related provisions; defines terms.

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New York Assembly Bill 4427 (2025-2026) would add a new Section 2403-a to the Insurance Law, prohibiting insurers from using external consumer data and information sources (ECDIS), algorithms, or predictive models in ways that unfairly discriminate based on race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, or gender expression when determining insurance rates. The bill defines 'external consumer data and information sources' broadly to include credit scores, social media habits, purchasing habits, home ownership, educational attainment, occupation, civil judgments, and court records. Insurers would be required to establish and maintain a risk management framework to test for discriminatory impacts, report findings to the Superintendent of Financial Services, and provide officer attestations of compliance. The Superintendent must conduct a public stakeholder process before adopting implementing rules, and must submit an annual report to the Governor and legislative leaders. Documents submitted to the Superintendent are designated confidential and trade-secret-protected under Section 2403-a(d), exempt from FOIL and subpoena. The bill exempts title insurance, surety bonds, and most commercial insurance policies, though it applies to business owners' policies and commercial general liability policies with annual premiums of $10,000 or less per Section 2403-a(g). Traditional actuarially-sound underwriting factors and longstanding industry claims-settlement practices are also exempt unless incorporated into an ECDIS-based algorithm or predictive model. The law would take effect 180 days after enactment.

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