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

BILL NUMBER:S7223

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 specifically 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 coverage 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

None.

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, 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.