Bill · H.R. 3664· House(119-HR-3664)
PAID Act
- Introduced
- 5/29/2025
- Last activity
- 5/29/2025 — Referred to the Committee on Financial Services, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Sponsored by
- Bonnie Watson Coleman
- Cosponsors
- - 2 - 0
- Introduced
- In Committee
What this bill would do
The "Prohibit Auto Insurance Discrimination Act" or "PAID Act" aims to stop private passenger automobile insurers from using specific income-related factors to set insurance rates or determine eligibility. It prohibits using variables like education, occupation, and credit scores to influence premiums. Insurers must submit information to the FTC to ensure their practices do not disproportionately impact certain groups. Additionally, the bill requires all underwriting rules and rate filings to be available for public inspection. This law includes strict enforcement through the FTC and allows for consumer and state legal actions.
Yes· 3 of 21
Would households on low incomes be better off under this?+8
The bill specifically targets the removal of proxies that lead to higher insurance rates for lower-income drivers.
Would Black Americans be better off under this?+7
The bill helps mitigate potential racial disparities caused by the use of proxy variables like ZIP Code.
Would Hispanic Americans be better off under this?+7
The bill helps mitigate potential racial disparities caused by the use of proxy variables like ZIP Code.
The opposite
Would high-income households be better off under this?-4
The bill may reduce the benefit of lower rates currently obtained by using affluent proxies.
Would business owners be better off under this?-3
The bill increases regulatory compliance burdens and mandates transparency for insurance companies.
Does this leave more decisions to the states?-3
The bill limits state-level control over insurance pricing by establishing federal prohibitions and oversight.
Who it would affect, and how
Potential Positive Impacts for People
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Fairer Pricing for Drivers: By prohibiting the use of income proxies, the bill prevents higher rates from being charged to lower-income drivers and lower rates from being charged to more affluent drivers (Section 2, subsection 5).
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Increased Transparency: The bill mandates that all underwriting rules and rate filings must be available for public inspection, meaning they can no longer be kept as private trade secrets (Section 3, subsection d).
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Protection Against Discrimination: Insurers are required to demonstrate through the FTC that their marketing, underwriting, and rating models do not have a disparate impact on groups based on race, religion, sex, disability, or other protected characteristics (Section 3, subsection c).
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Consumer Accountability: The bill allows individuals to take legal action against insurers for willful or negligent violations, which can include actual damages and attorney's fees (Section 4, subsection b).
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State Oversight: State attorneys general are empowered to bring civil actions on behalf of their residents to enforce compliance or seek compensation (Section 4, subsection c).
Potential Negative Impacts for People
- Legal Liability for Reasonable Errors: A person or company is not held liable for a violation if they can prove they maintained reasonable procedures to ensure they were following the Act (Section 3, subsection e).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+8Good For African Americans+7Good For Asian Americans+7Good For Hispanic Americans+7Good For Native Americans+7Good For L G B T Q Community+6Good For People With Disabilities+6Good For Men+5Good For Rural Residents+5Good For Urban Residents+5Good For Women+5Good For Middle Class Households+3Good For White Americans+3Good For High Income Households-4Good For Business Owners-3
- Social Issues And Justice
- Improves Racial Equity+7Improves Poverty Reduction+6Improves Disability Rights+5Improves Gender Equality+5Improves L G B T Q Rights+5
- Governance And Ideology
- Improves Government Transparency+7Increases Federal Power+5Increase States Rights-3
- Economy And Finance
- Improves Consumer Protection+7
- 5/29/2025
- Referred to the Committee on Financial Services, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2 Cosponsors added.
- Introduced in House
Mark TakanoDemocrat · California
Rashida TlaibDemocrat · Michigan