The New York State Senate

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

                                  10137

                          I N  A S S E M B L Y

                               May 9, 2012
                               ___________

Introduced by M. of A. CAHILL -- read once and referred 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-
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

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

                                                           LBD15452-01-2

A. 10137                            2

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.