The PAID Act would stop car insurance companies from using certain personal information to set your insurance rates or decide whether to insure you. Right now, insurers can charge you more based on things like your gender, where you live (zip code), whether you're married, your employment status, or your credit score. This bill would make all of those factors off-limits for rate-setting decisions.

The bill also requires insurance companies to prove they're not discriminating against people based on race, color, national origin, religion, sex, sexual orientation, disability, or gender identity. They'd have to regularly report to the Federal Trade Commission (FTC) showing that their pricing, hiring decisions, claims handling, and fraud investigations don't unfairly target any protected group. Additionally, insurance companies would have to publicly share their underwriting rules and rate information so customers can see how they make their decisions.

If an insurance company violates these rules, the FTC can take action against them for unfair or deceptive business practices. Essentially, this bill aims to make car insurance pricing more transparent and prevent insurers from using personal characteristics—beyond driving record and other driving-related factors—to determine what you pay for coverage.

PAID Act

Watson Coleman, Bonnie

Prohibit Auto Insurance Discrimination Act or the PAID Act This bill prohibits an automobile insurer from considering specified factors when determining a consumer's insurance rates or eligibility. These prohibited factors include <ul> <li>gender, </li> <li>employment status, </li> <li>zip code, </li> <li>census tract, </li> <li>marital status, and </li> <li>credit score. </li> </ul> Automobile insurers must regularly submit to the Federal Trade Commission (FTC) information that demonstrates that the insurer's marketing, underwriting, rating, claims handling, and fraud investigations do not disparately impact customers on the basis of race, color, national or ethnic origin, religion, sex, sexual orientation, disability, gender identity, or gender expression. Further, automobile insurers must make underwriting rules and rate filings available to the public. The FTC may enforce a violation of these requirements as an unfair or deceptive act or practice.