SB 697

This bill regulates the use of event data recorders (EDRs) in motor vehicles and

prohibits certain insurance practices on the basis of whether an insured under a

motor vehicle liability insurance policy authorizes the insurer to access or use

information collected by an EDR.

This bill prohibits, with certain exceptions, any person from accessing,

collecting, or transferring information stored on an EDR installed in a motor vehicle

unless the person discloses the intended use of the information and receives the

written consent of an owner of the vehicle. A person who violates the disclosure

requirements or the prohibition on access, collection, or transfer of EDR information

may be required to forfeit not less than $200 nor more than $2,000.

Also under this bill, the Department of Transportation (DOT) must require a

statement as to whether the vehicle is equipped with an EDR to be displayed on any

guide DOT requires to be displayed on used motor vehicles displayed or offered for

sale by a motor vehicle dealer.

The bill prohibits an insurer from conditioning the issuance or renewal of a

motor vehicle liability insurance policy on whether the insured vehicle or vehicle to

be insured is equipped with an EDR or whether, if it is so equipped, the insured or

applicant for insurance authorizes the insurer to access or use information collected

by the EDR. The bill also prohibits an insurer from canceling a motor vehicle liability

insurance policy, excluding or limiting coverage under a motor vehicle liability

insurance policy, or denying a claim under a motor vehicle liability insurance policy,

on the basis of whether the insured vehicle is equipped with an EDR or whether, if

it is so equipped, the insured authorizes the insurer to access or use information

collected by the EDR. The bill makes an exception from these prohibitions for a

usage-based motor vehicle liability insurance policy, which is an insurance policy for

which the premium is based on the active, digital monitoring of how the insured

drives.