Legislation restricting insurance companies use of `black box' data wins approval in North Dakota

BISMARCK, N.D. (AP) _ Insurance companies would be barred from using data from vehicles' ``black boxes'' to set drivers' rates, under legislation that won final approval Monday in the North

Monday, April 11th 2005, 1:09 pm

By: News On 6

BISMARCK, N.D. (AP) _ Insurance companies would be barred from using data from vehicles' ``black boxes'' to set drivers' rates, under legislation that won final approval Monday in the North Dakota Legislature.

The bill is aimed at computer chips that record a car's speed, braking and steering efficiency, and whether the driver was wearing a seat belt. The chips are common in newer vehicles, and typically store information that can be used to investigate an accident.

``If you were in a car accident, and if this information had been downloaded ... the insurance companies could not use this information for the purpose of rate assessment after the accident,'' said Rep. RaeAnn Kelsch, a Republican.

The House approved the measure 87-3 on Monday. The Senate endorsed it last week. It now goes to Republican Gov. John Hoeven, who is expected to sign it.

North Dakota is one of at least eight states considering black-box regulation this year, according to the National Conference of State Legislatures.

The North Dakota bill also requires cars and trucks, starting with the 2007 model year, to include information about the recorders in their owner's manuals, and says dealers must notify their customers about the presence of a recorder.

It allows data to be retrieved without the owner's consent for use in medical research, or for improving motor vehicle safety, if the driver's identity is not disclosed. A judge can also order disclosure of the information.