STATE OF NEW YORK ________________________________________________________________________ 7651 2023-2024 Regular Sessions IN SENATE September 13, 2023 ___________ Introduced by Sen. BORRELLO -- read twice and ordered printed, and when printed to be committed to the Committee on Rules 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: 1 Section 1. Paragraph 2 of subsection (g) of section 3420 of the insur- 2 ance law, as amended by chapter 735 of the laws of 2022, is amended to 3 read as follows: 4 (2) (A) Every insurer issuing or delivering any policy that satisfies 5 the requirements of article six of the vehicle and traffic law shall 6 provide coverage in such policy against liability of [an] a married 7 insured because of death of or injuries to his or her spouse up to the 8 liability insurance limits provided under such policy even where the 9 injured spouse, to be entitled to recover, must prove the culpable 10 conduct of the insured spouse, unless the married insured elects, in 11 writing and in such form as the superintendent determines, to decline 12 and refuse such coverage in his or her policy. Such insurance coverage 13 shall be known as "supplemental spousal liability insurance". 14 (B) Upon issuance, renewal or amendment of a motor vehicle liability 15 policy that satisfies the requirements of article six of the vehicle and 16 traffic law, the insurer shall notify the married insured, in writing, 17 that such policy shall include supplemental spousal liability insurance 18 unless the married insured declines and refuses such insurance, in writ- 19 ing and in such form as shall be determined by the superintendent. Such 20 notification shall be contained on the front of the premium notice in 21 boldface type and include a concise statement that supplementary spousal 22 coverage is provided unless declined by the married insured, an explana- 23 tion of such coverage, and the insurer's premium for such coverage. 24 (C) The insurer's requirements in subparagraphs (A) and (B) of this 25 paragraph shall apply only to policies issued or delivered to an insured EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13116-01-3
S. 7651 2 1 who is married. An insurer shall not provide supplemental spousal 2 liability insurance coverage in any policy to an insured who is not 3 married, unless the single or unmarried insured elects, in writing and 4 in such form as the superintendent determines, to accept and request 5 such coverage in his or her policy. 6 (D) Upon issuance, renewal or amendment of a motor vehicle liability 7 policy that satisfies the requirements of article six of the vehicle and 8 traffic law, the insurer shall notify the single or unmarried insured, 9 in writing, that such policy shall not include supplemental spousal 10 liability insurance unless the single or unmarried insured accepts and 11 requests such insurance, in writing and in such form as shall be deter- 12 mined by the superintendent. Such notification shall be contained on the 13 front of the premium notice in boldface type and include a concise 14 statement that supplementary spousal coverage is not provided unless 15 requested by the single or unmarried insured, an explanation of such 16 coverage including a statement that such coverage does not benefit 17 insureds that are not married, and the single or unmarried insurer's 18 premium for such coverage. 19 § 2. Paragraphs 1 and 2 of subsection (g) of section 3420 of the 20 insurance law, as amended by chapter 584 of the laws of 2002, are 21 amended and two new paragraphs 3 and 4 are added to read as follows: 22 (1) Upon written request of an insured, and upon payment of a reason- 23 able premium established in accordance with article twenty-three of this 24 chapter, an insurer issuing or delivering any policy that satisfies the 25 requirements of article six of the vehicle and traffic law shall provide 26 coverage against liability of [an] a married insured because of death of 27 or injuries to his or her spouse up to the liability insurance limits 28 provided under such policy even where the injured spouse, to be entitled 29 to recover, must prove the culpable conduct of the insured spouse. Such 30 insurance coverage shall be known as "supplemental spousal liability 31 insurance". 32 (2) Upon issuance of a motor vehicle liability policy that satisfies 33 the requirements of article six of the vehicle and traffic law and that 34 becomes effective on or after January first, two thousand three, pursu- 35 ant to regulations promulgated by the superintendent, the insurer shall 36 notify the married insured, in writing, of the availability of supple- 37 mental spousal liability insurance. Such notification shall be contained 38 on the front of the premium notice in boldface type and include a 39 concise statement that supplementary spousal coverage is available, an 40 explanation of such coverage, and the insurer's premium for such cover- 41 age. Subsequently, a notification of the availability of supplementary 42 spousal liability coverage shall be provided at least once a year in 43 motor vehicle liability policies issued pursuant to article six of the 44 vehicle and traffic law, including those originally issued prior to 45 January first, two thousand three. Such notice must include a concise 46 statement that supplementary spousal coverage is available, an explana- 47 tion of such coverage, and the insurer's premium for such coverage. 48 (3) The insurer's requirements in paragraphs one and two of this 49 subsection shall apply only to policies issued or delivered to an 50 insured who is married. An insurer shall not provide supplemental spous- 51 al liability insurance coverage in any policy to an insured who is not 52 married, unless the single or unmarried insured elects, in writing and 53 in such form as the superintendent determines, to accept and request 54 such coverage in his or her policy. 55 (4) Upon issuance, renewal or amendment of a motor vehicle liability 56 policy that satisfies the requirements of article six of the vehicle and
S. 7651 3 1 traffic law, the insurer shall notify the single or unmarried insured, 2 in writing, that such policy shall not include supplemental spousal 3 liability insurance unless the single or unmarried insured accepts and 4 requests such insurance, in writing and in such form as shall be deter- 5 mined by the superintendent. Such notification shall be contained on the 6 front of the premium notice in boldface type and include a concise 7 statement that supplementary spousal coverage is not provided unless 8 requested by the single or unmarried insured, an explanation of such 9 coverage including a statement that such coverage does not benefit 10 insureds that are not married, and the single or unmarried insurer's 11 premium for such coverage. 12 § 3. This act shall take effect on the one hundred twentieth day after 13 it shall have become a law; provided, however that the amendments to 14 paragraph two of subsection (g) of section 3420 of the insurance law 15 made by section one of this act shall be subject to the expiration and 16 reversion of such subsection pursuant to section 2 of chapter 735 of the 17 laws of 2022, as amended, when upon such date the provisions of section 18 two of this act shall take effect.