Requires motor vehicle liability insurance policies to include supplemental spousal liability coverage unless the insured declines such coverage in writing.

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S1912-2013 Actions

• Jan 9, 2013: REFERRED TO INSURANCE

S1912-2013 Memo

BILL NUMBER:S1912

TITLE  OF  BILL:   An act to amend the insurance law, in relation to the
provision of supplemental spousal liability insurance to persons who are
insured for loss resulting from the ownership, maintenance and use of  a
motor vehicle

PURPOSE OR GENERAL IDEA OF BILL:  Provides that insurance companies must
provide motorists with supplemental spousal liability insurance coverage
equal  to  bodily  injury liability coverage, unless the insured specif-
ically rejects such coverage in writing.

SUMMARY OF SPECIFIC PROVISIONS:  This bill would amend subsection (g) of
section 3420 of the insurance law as amended by Chapter 548 of the  laws
of  2002  to  provides  that  all  auto  insurance policies must include
supplemental spousal liability insurance coverage equal to the insured's
bodily injury liability insurance coverage unless the  insured  declines
such spousal insurance with a written waiver.

JUSTIFICATION:    This  bill  would  amend  the insurance law to prevent
insurance consumers unknowingly waiving supplemental  spousal  liability
insurance coverage. Under a traditional auto insurance policy, no cover-
age  is  provided  for injuries or death to a spouse if the accident was
caused by the  other  insured  spouse.  Supplemental  spousal  liability
insurance  provides vital coverage to motorists where one insured spouse
is injured or killed in an auto accident caused  by  the  other  insured
spouse.  Few  drivers  are  aware  of  the value of supplemental spousal
liability insurance and insurance companies rarely promote this form  of
insurance  coverage.  This bill will ensure that insured New Yorkers are
fully protected by supplemental spousal liability  insurance,  equal  to
the  bodily injury liability insurance coverage they select, unless they
affirmatively elect to reject coverage.

PRIOR LEGISLATIVE HISTORY:  S.7223 - Referred to Insurance

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE:  This act shall take effect on the first of January next
succeeding the date on which it shall become and shall apply to policies
issued, renewed or modified on or after such date; provided that, effec-
tive immediately, any actions necessary to implement the  provisions  of
this  act  on  its  effective  date  are  authorized  and directed to be
completed on or before such date.

S1912-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    1912

                         2013-2014 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 9, 2013
                                 ___________

  Introduced  by  Sen.  LIBOUS -- read twice and ordered printed, and when
    printed to be committed to the Committee on Insurance

  AN ACT to amend the insurance law,  in  relation  to  the  provision  of
    supplemental  spousal  liability  insurance to persons who are insured
    for loss resulting from the ownership, maintenance and use of a  motor
    vehicle

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. Subsection (g) of section 3420 of  the  insurance  law,  as
  amended  by  chapter  584  of  the  laws  of 2002, is amended to read as
  follows:

    (g) [No] (1) EXCEPT AS OTHERWISE PROVIDED IN  PARAGRAPH  TWO  OF  THIS
  SUBSECTION,  NO policy or contract shall be deemed to insure against any
  liability of an insured because of death of or injuries to  his  or  her
  spouse or because of injury to, or destruction of property of his or her
  spouse   unless  express  provision  relating  specifically  thereto  is
  included in the policy [as provided in paragraphs one and  two  of  this
  subsection].  This  exclusion shall apply only where the injured spouse,
  to be entitled to recover,  must  prove  the  culpable  conduct  of  the
  insured spouse.
    [(1) Upon written request of an insured, and upon payment of a reason-
  able premium established in accordance with article twenty-three of this
  chapter, an] (2) (A) EVERY insurer issuing or delivering any policy that
  satisfies the requirements of article six of the vehicle and traffic law
  shall  provide  coverage  IN SUCH POLICY against liability of an insured
  because of death of or injuries to his or her spouse up to the liability
  insurance limits provided under  such  policy  even  where  the  injured
  spouse,  to  be  entitled to recover, must prove the culpable conduct of
  the insured spouse, UNLESS THE INSURED ELECTS, IN WRITING  AND  IN  SUCH
  FORM AS THE SUPERINTENDENT DETERMINES, TO DECLINE AND REFUSE SUCH COVER-

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD04011-01-3

 S. 1912                             2

  AGE  IN  HIS  OR  HER  POLICY. Such insurance coverage shall be known as
  "supplemental spousal liability insurance".
    [(2)]  (B)  Upon  issuance,  RENEWAL  OR  AMENDMENT of a motor vehicle
  liability policy that satisfies the requirements of article six  of  the
  vehicle  and traffic law [and that becomes effective on or after January
  first, two thousand three, pursuant to regulations  promulgated  by  the
  superintendent],  the  insurer shall notify the insured, in writing, [of
  the availability of] THAT SUCH POLICY SHALL INCLUDE supplemental spousal
  liability insurance UNLESS THE INSURED DECLINES AND REFUSES SUCH  INSUR-
  ANCE,  IN  WRITING AND IN SUCH FORM AS SHALL BE DETERMINED BY THE SUPER-
  INTENDENT.  Such notification shall be contained on  the  front  of  the
  premium  notice  in  boldface  type and include a concise statement that
  supplementary spousal coverage is [available] PROVIDED  UNLESS  DECLINED
  BY  THE  INSURED,  an  explanation  of  such coverage, and the insurer's
  premium for such coverage. [Subsequently, a notification of  the  avail-
  ability of supplementary spousal liability coverage shall be provided at
  least once a year in motor vehicle liability policies issued pursuant to
  article  six  of the vehicle and traffic law, including those originally
  issued prior to January first, two  thousand  three.  Such  notice  must
  include  a  concise  statement  that  supplementary  spousal coverage is
  available, an explanation of such coverage, and  the  insurer's  premium
  for such coverage.]
    S  2. This act shall take effect on the first of January next succeed-
  ing the date on which it shall have become a  law  and  shall  apply  to
  policies  issued,  renewed  or  modified on or after such date; provided
  that, effective immediately, any  actions  necessary  to  implement  the
  provisions of this act on its effective date are authorized and directed
  to be completed on or before such date.