PAID Act

The PAID Act (HR 3880) prohibits private passenger automobile insurers from using certain personal factors to determine insurance eligibility or set rates. It bans the use of gender, education level, occupation, employment status, home ownership, ZIP Code, marital status, credit score, consumer reports, previous insurer, and prior insurance purchases in underwriting and rating decisions. The bill requires insurers to submit business practice information to the Federal Trade Commission for review and mandates that underwriting rules and rate filings be publicly available. This law directly affects auto insurance companies and their customers, particularly lower-income drivers who have historically paid higher premiums due to these discriminatory factors. The act takes effect one year after enactment and establishes enforcement through the FTC, private lawsuits, and state actions.