S T A T E O F N E W Y O R K
________________________________________________________________________
8003
2023-2024 Regular Sessions
I N A S S E M B L Y
September 1, 2023
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Introduced by M. of A. HAWLEY, REILLY, BYRNES, BLANKENBUSH, DiPIETRO,
GALLAHAN, J. M. GIGLIO, SMULLEN, E. BROWN -- read once and referred to
the Committee on Insurance
AN ACT to amend the insurance law, in relation to supplemental spousal
liability insurance for married insureds
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 2 of subsection (g) of section 3420 of the insur-
ance law, as amended by chapter 735 of the laws of 2022, is amended to
read as follows:
(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] A MARRIED
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 MARRIED insured elects, in
writing and in such form as the superintendent determines, to decline
and refuse such coverage in his or her policy. Such insurance coverage
shall be known as "supplemental spousal liability insurance".
(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, the insurer shall notify the MARRIED insured, in writing,
that such policy shall include supplemental spousal liability insurance
unless the MARRIED insured declines and refuses such insurance, in writ-
ing and in such form as shall be determined by the superintendent. 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 provided unless declined by the MARRIED insured, an explana-
tion of such coverage, and the insurer's premium for such coverage.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13116-01-3
A. 8003 2
(C) THE INSURER'S REQUIREMENTS IN SUBPARAGRAPHS (A) AND (B) OF THIS
PARAGRAPH SHALL APPLY ONLY TO POLICIES ISSUED OR DELIVERED TO AN INSURED
WHO IS MARRIED. AN INSURER SHALL NOT PROVIDE SUPPLEMENTAL SPOUSAL
LIABILITY INSURANCE COVERAGE IN ANY POLICY TO AN INSURED WHO IS NOT
MARRIED, UNLESS THE SINGLE OR UNMARRIED INSURED ELECTS, IN WRITING AND
IN SUCH FORM AS THE SUPERINTENDENT DETERMINES, TO ACCEPT AND REQUEST
SUCH COVERAGE IN HIS OR HER POLICY.
(D) UPON ISSUANCE, RENEWAL OR AMENDMENT OF A MOTOR VEHICLE LIABILITY
POLICY THAT SATISFIES THE REQUIREMENTS OF ARTICLE SIX OF THE VEHICLE AND
TRAFFIC LAW, THE INSURER SHALL NOTIFY THE SINGLE OR UNMARRIED INSURED,
IN WRITING, THAT SUCH POLICY SHALL NOT INCLUDE SUPPLEMENTAL SPOUSAL
LIABILITY INSURANCE UNLESS THE SINGLE OR UNMARRIED INSURED ACCEPTS AND
REQUESTS SUCH INSURANCE, IN WRITING AND IN SUCH FORM AS SHALL BE DETER-
MINED BY THE SUPERINTENDENT. 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 NOT PROVIDED UNLESS
REQUESTED BY THE SINGLE OR UNMARRIED INSURED, AN EXPLANATION OF SUCH
COVERAGE INCLUDING A STATEMENT THAT SUCH COVERAGE DOES NOT BENEFIT
INSUREDS THAT ARE NOT MARRIED, AND THE SINGLE OR UNMARRIED INSURER'S
PREMIUM FOR SUCH COVERAGE.
§ 2. Paragraphs 1 and 2 of subsection (g) of section 3420 of the
insurance law, as amended by chapter 584 of the laws of 2002, are
amended and two new paragraphs 3 and 4 are added to read as follows:
(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 insurer issuing or delivering any policy that satisfies the
requirements of article six of the vehicle and traffic law shall provide
coverage against liability of [an] A MARRIED 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. Such
insurance coverage shall be known as "supplemental spousal liability
insurance".
(2) Upon issuance 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, pursu-
ant to regulations promulgated by the superintendent, the insurer shall
notify the MARRIED insured, in writing, of the availability of supple-
mental spousal liability insurance. 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, an
explanation of such coverage, and the insurer's premium for such cover-
age. Subsequently, a notification of the availability 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 explana-
tion of such coverage, and the insurer's premium for such coverage.
(3) THE INSURER'S REQUIREMENTS IN PARAGRAPHS ONE AND TWO OF THIS
SUBSECTION SHALL APPLY ONLY TO POLICIES ISSUED OR DELIVERED TO AN
INSURED WHO IS MARRIED. AN INSURER SHALL NOT PROVIDE SUPPLEMENTAL SPOUS-
AL LIABILITY INSURANCE COVERAGE IN ANY POLICY TO AN INSURED WHO IS NOT
MARRIED, UNLESS THE SINGLE OR UNMARRIED INSURED ELECTS, IN WRITING AND
IN SUCH FORM AS THE SUPERINTENDENT DETERMINES, TO ACCEPT AND REQUEST
SUCH COVERAGE IN HIS OR HER POLICY.
A. 8003 3
(4) UPON ISSUANCE, RENEWAL OR AMENDMENT OF A MOTOR VEHICLE LIABILITY
POLICY THAT SATISFIES THE REQUIREMENTS OF ARTICLE SIX OF THE VEHICLE AND
TRAFFIC LAW, THE INSURER SHALL NOTIFY THE SINGLE OR UNMARRIED INSURED,
IN WRITING, THAT SUCH POLICY SHALL NOT INCLUDE SUPPLEMENTAL SPOUSAL
LIABILITY INSURANCE UNLESS THE SINGLE OR UNMARRIED INSURED ACCEPTS AND
REQUESTS SUCH INSURANCE, IN WRITING AND IN SUCH FORM AS SHALL BE DETER-
MINED BY THE SUPERINTENDENT. 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 NOT PROVIDED UNLESS
REQUESTED BY THE SINGLE OR UNMARRIED INSURED, AN EXPLANATION OF SUCH
COVERAGE INCLUDING A STATEMENT THAT SUCH COVERAGE DOES NOT BENEFIT
INSUREDS THAT ARE NOT MARRIED, AND THE SINGLE OR UNMARRIED INSURER'S
PREMIUM FOR SUCH COVERAGE.
§ 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law; provided, however that the amendments to
paragraph two of subsection (g) of section 3420 of the insurance law
made by section one of this act shall be subject to the expiration and
reversion of such subsection pursuant to section 2 of chapter 735 of the
laws of 2022, as amended, when upon such date the provisions of section
two of this act shall take effect.