S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9407--A
                                                         Cal. No. 379
 
                           I N  A S S E M B L Y
 
                              March 13, 2024
                                ___________
 
 Introduced  by  M.  of A. WEPRIN, LEVENBERG -- read once and referred to
   the Committee on Insurance -- advanced to a third reading,  passed  by
   Assembly  and  delivered to the Senate, recalled from the Senate, vote
   reconsidered, bill amended, ordered reprinted, retaining its place  on
   the order of third reading

 AN  ACT  to amend the insurance law, in relation to supplemental spousal
   liability insurance
 
   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 735 of the laws  of  2022,  is  amended  to  read  as
 follows:
   (g)  (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]
 THE INSURED'S spouse or because of injury to, or destruction of property
 of [his or her] THE INSURED'S spouse unless express  provision  relating
 specifically  thereto  is  included  in the policy. This exclusion shall
 apply only where the injured spouse, to be  entitled  to  recover,  must
 prove the culpable conduct of the insured spouse.
   (2)  (A) [Every] (I) UPON ISSUANCE OF A MOTOR VEHICLE LIABILITY POLICY
 AND PAYMENT OF A REASONABLE PREMIUM ESTABLISHED IN ACCORDANCE WITH ARTI-
 CLE 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 AND IS SUBJECT TO SECTION THREE THOUSAND FOUR HUNDRED TWEN-
 TY-FIVE OF THIS ARTICLE shall provide coverage in such A  policy  ISSUED
 TO  A  FIRST  NAMED  INSURED  WHO  HAS INDICATED THAT SUCH INSURED HAS A
 SPOUSE ON THE INSURANCE APPLICATION, against  liability  of  an  insured
 because  of death of or injuries to [his or her] THE INSURED'S 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]  A  FIRST  NAMED  insured
 elects, in writing and in such form as the superintendent determines, to
 decline  and  refuse  such  coverage  in  [his  or  her] THE FIRST NAMED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14782-05-4
 A. 9407--A                          2

 INSURED'S policy. Such insurance coverage shall  be  known  as  "supple-
 mental spousal liability insurance".
   (II) 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,  OTHER  THAN
 AS SPECIFIED IN ITEM (I) OF THIS SUBPARAGRAPH, SHALL PROVIDE COVERAGE IN
 SUCH  A  POLICY  AGAINST  LIABILITY OF AN INSURED BECAUSE OF DEATH OF OR
 INJURIES TO THE INSURED'S 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.
   (B)  (I)  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 IS SUBJECT TO SECTION THREE THOUSAND FOUR
 HUNDRED TWENTY-FIVE OF THIS ARTICLE, the insurer shall  notify  [the]  A
 FIRST  NAMED insured WHO HAS INDICATED THAT SUCH INSURED HAS A SPOUSE ON
 THE INSURANCE APPLICATION, in writing, that such  policy  shall  include
 supplemental  spousal  liability  insurance  unless  [the] A FIRST NAMED
 insured declines and refuses such insurance, in writing 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] SUPPLEMENTAL spousal
 LIABILITY coverage is provided unless declined by [the]  A  FIRST  NAMED
 insured,  an explanation of such coverage, and the insurer's premium for
 such coverage.
   (II) UPON RENEWAL OR AMENDMENT OF A  MOTOR  VEHICLE  LIABILITY  POLICY
 THAT  SATISFIES THE REQUIREMENTS OF ARTICLE SIX OF THE VEHICLE AND TRAF-
 FIC LAW AND HAS SUPPLEMENTAL SPOUSAL LIABILITY COVERAGE UNDER THE  POLI-
 CY,  THE  INSURER  SHALL PROVIDE A NOTIFICATION TO A FIRST NAMED INSURED
 THAT INCLUDES A CONCISE STATEMENT THAT SUCH POLICY INCLUDES SUPPLEMENTAL
 SPOUSAL LIABILITY COVERAGE UNLESS DECLINED BY A FIRST NAMED  INSURED  IN
 WRITING  AND  IN SUCH FORM AS SHALL BE DETERMINED BY THE SUPERINTENDENT,
 AN EXPLANATION OF SUCH COVERAGE, AND  THE  INSURER'S  PREMIUM  FOR  SUCH
 COVERAGE.  SUCH  NOTIFICATION  SHALL  BE  CONTAINED  ON THE FRONT OF THE
 PREMIUM NOTICE IN BOLDFACE TYPE.
   (III) A WRITTEN DECLINATION SHALL APPLY TO SUBSEQUENT POLICY  RENEWALS
 UNLESS  A  FIRST  NAMED  INSURED REQUESTS SUPPLEMENTAL SPOUSAL LIABILITY
 INSURANCE.
   (C) A NOTIFICATION OF THE AVAILABILITY OF SUPPLEMENTAL SPOUSAL LIABIL-
 ITY INSURANCE SHALL BE PROVIDED UPON POLICY ISSUANCE, OTHER THAN FOR THE
 POLICIES TO WHICH THE NOTIFICATION REQUIREMENT IN ITEM (I)  OF  SUBPARA-
 GRAPH  (B)  OF  THIS PARAGRAPH APPLIES, AND AT LEAST ONCE A YEAR FOR ALL
 MOTOR VEHICLE LIABILITY POLICIES THAT SATISFY THE REQUIREMENTS OF  ARTI-
 CLE  SIX  OF  THE  VEHICLE  AND  TRAFFIC  LAW, WHERE THE POLICY DOES NOT
 ALREADY PROVIDE SUPPLEMENTAL SPOUSAL LIABILITY INSURANCE.   SUCH  NOTICE
 SHALL  BE  CONTAINED ON THE FRONT OF THE PREMIUM NOTICE IN BOLDFACE TYPE
 AND INCLUDE A CONCISE  STATEMENT  THAT  SUPPLEMENTAL  SPOUSAL  LIABILITY
 COVERAGE  IS  AVAILABLE, AN EXPLANATION OF SUCH COVERAGE, AND THE INSUR-
 ER'S PREMIUM FOR SUCH COVERAGE.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law and   shall   apply   to  policies    issued,
 renewed  or  modified  on or after such date; provided, however that the
 amendments to subsection (g) of section 3420 of the insurance  law  made
 by section one of this act shall be subject to the expiration and rever-
 sion of such subsection pursuant to section 2 of chapter 735 of the laws
 of 2022, as amended.