Circular Std Book

[Tijuana Strauhal]

Thenew action plan announces initiatives along the entire life cycle of products. It targets how products are designed, promotes circular economy processes, encourages sustainable consumption, and aims to ensure that waste is prevented and the resources used are kept in the EU economy for as long as possible.

It introduces legislative and non-legislative measures targeting areas where action at the EU level brings real added value.

It is essential to monitor progress towards a circular economy, and its direct and indirect benefits. This allows the EU and national authorities to assess whether policies are effective and to identify best practices.

The purpose of this circular letter is to advise insurers authorized to write life insurance in New York of their statutory obligations regarding the use of external consumer data and information sources in underwriting for life insurance.

The N.Y. Insurance Law, Executive Law, General Business Law, and federal Civil Rights Act, protect against discrimination for certain classes of individuals. These laws govern the activities of insurers, including the ability of insurers to underwrite based on certain criteria. For example, Insurance Law Article 26 prohibits the use of race, color, creed, national origin, status as a victim of domestic violence, or past lawful travel in any manner, among other things, in underwriting. In addition, Insurance Law 4224(a)(2) and (b)(2) prohibit insurers from refusing to insure or continuing to insure, limiting the amount, extent or kind of coverage, or charging a different rate for the same coverage solely because of the physical or mental disability, impairment or disease, or prior history of the disability or disease of an insured or potential insured except where the refusal, limitation or rate differential is permitted by law or regulation and is based on sound actuarial principles or is related to actual or reasonably anticipated experience. Insurers are responsible for complying with these anti-discrimination laws irrespective of whether they themselves are collecting data and directly underwriting consumers, or relying on external data sources, algorithms of external vendors or predictive models that are intended to be partial or full substitutes for direct underwriting. In short, an insurer may not use an external data source to collect or use information that the insurer would otherwise be prohibited from collecting or using directly.

Second, an insurer should not use an external data source, algorithm or predictive model in underwriting or rating unless the insurer can establish that the underwriting or rating guidelines are not unfairly discriminatory in violation of Articles 26 and 42. In evaluating whether an underwriting or rating guideline derived from external data sources or information is unfairly discriminatory, an insurer should consider the following questions:

(1) Is the underwriting or rating guideline that is derived, in whole or in part, from external data sources or information supported by generally accepted actuarial principles or actual or reasonably anticipated experience that justifies different results for similarly situated applicants?

(2) Is there a valid explanation or rationale for the differential treatment of similarly situated applicants reflected by the underwriting or rating guideline that is derived, in whole or in part, from external data sources or information?

Importantly, even if statistical data is interpreted to support an underwriting or rating guideline, there must still be a valid rationale or explanation supporting the differential treatment of otherwise like risks. The second part of this inquiry is particularly important where there is no demonstrable causal link between the classification and increased mortality and also where an underwriting or rating guideline has a disparate impact on protected classes.

The Department supports efforts to improve the effectiveness and timeliness of insurance underwriting decisions in order to provide consumers with increased access to financial services consistently with law. Accordingly, an insurer should not use external data sources, algorithms or predictive models in underwriting or rating unless the insurer has determined that the processes do not collect or utilize prohibited criteria and that the use of the external data sources, algorithms or predictive models are not unfairly discriminatory. The insurer must establish that the external data sources, algorithms or predictive models are based on sound actuarial principles with a valid explanation or rationale for any claimed correlation or causal connection. An insurer must also disclose to consumers the content and source of any external data upon which the insurer has based an adverse underwriting decision.

Please direct any questions regarding this circular letter to: Peter Dumar, Chief Insurance Attorney, Life Bureau, New York State Department of Financial Services, One Commerce Plaza, Albany, New York 12257 or by email at [email protected].

1. Criminal history only includes past convictions or pending criminal matters. It does not include prior arrests, pleas or imprisonment for which an individual was not convicted of any crime; or civil dispute history such as appearances in housing court, civil litigation, liens, bankruptcy, etc. See Executive Law 296(16). Criminal history does include being sanctioned by the U.S. Government (or any agency thereof), or by any international organization in which the U.S. Government (or any agency thereof) is a member, for money laundering, terrorism, trafficking, etc.

This circular is a re-issuance of guidance on the administration and preparation of the transit assistance program for guidance on the administration and preparation of grant applications for the Formula Grants for Rural Area Program under 49 U.S.C 5311. This revision incorporates provisions of the Moving Ahead for Progress in the 21st Century Act (MAP-21) and includes the most current available guidance as of the date of publication:

In the circular economy, instead of taking resources from the earth, using them once, and disposing of them in landfill, we keep them in use for as long as possible. We make sure that we gain the maximum benefit from them while reducing negative environmental impacts.

WRAP is developing short policy briefs that pull out new nation-specific data on carbon savings, reduced biodiversity loss, and economic growth benefits from more implementation of the circular economy. These briefs also provide suggestions for new nation-specific policy interventions that can help deliver these benefits. Initial briefs are being developed for Denmark, Sweden, Italy, India, Indonesia, Wales, Northern Ireland, England, and Scotland.

In Sweden (for example), it is estimated that by implementing policies that drive a circular economy, 68,000 jobs could be created by 2030, with the majority of these in remanufacturing.

As well as developing policy briefs that highlight the benefits of the circular economy by nation, WRAP can help develop messaging that resonates with policymakers and provide a range of examples of the circular economy in action.

Circular food systems feed more people with less land. They promote healthy, diverse, and plant-based diets, and eliminate food loss and waste by re-distributing surplus food. Soil health is also protected by switching to nature-positive agricultural practices, and food by-products are used to create bio-based fertilisers and other useful products.

A circular economy for fashion and textiles aims to cut carbon and environmental impacts by designing out manufacturing waste, increasing the use of recycled and recyclable materials, and extending the life of garments. It also creates new types of fashion businesses such as hire, lease, and repair services. Fashion, apparel, and homewares businesses around the world are already piloting new circular approaches and seeing the benefits of circularity.

In a circular economy, problematic plastics are eliminated, and products and packaging are designed and made with recycled materials. They are also easily collected, sorted, and recycled into new items. New business models and innovation reduce the amount of packaging on supermarket shelves.

WRAP provides guidance for policymakers including the short nation-specific policy briefs on circular economy benefits, and our programmes for transforming food, textiles, and plastics can be adapted to meet differing national needs.

International Non-Government Organisations can continue to work together in partnership to help create learnings and evidence that promotes circular economy action, thereby creating a clearer and more consistent voice.

Businesses can collaborate within their sectors to move to circular models through pilot and scaling up circular initiatives, influencing and encouraging citizens to change their behaviour, adopting innovative technology for circularity, and influencing governments.

Academics and innovators can participate in sector collaborations, providing expertise, creativity, and technical solutions to overcome the challenges of circular business. In Wales, for example, WRAP is working in collaboration with over 20 organisations to showcase how manufacturers can overcome barriers to increasing the use of recycled materials. Find out more.

A major shift in conventional thinking and operation is required to realize a truly circular EV battery supply chain. Rapid state-of-health diagnostics and strategies to prolong battery life would keep functional materials from premature disposal. Sustainable designs, innovative materials, reversible manufacturing techniques, and autonomous robotic systems would enable the safe and efficient disassembly for regeneration, repair, and reuse. Finally, technologies for a circular EV supply chain would require increasing collaboration and transparency among those involved to distribute costs and revenues across different actors.

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