What's happening
This bill requires auto insurance policies to automatically include supplemental spousal liability coverage unless the insured actively declines it in writing.
Why it matters
Ensures automatic protection for spouses. The bill guarantees that auto insurance policies will automatically include supplemental liability coverage for injuries or death suffered by a spouse, unless the policyholder actively opts out in writing. This makes it much harder to inadvertently leave a spouse unprotected in case of an accident caused by the insured.
Shifts the default to greater coverage. By making supplemental spousal liability coverage the default rather than an extra option, the bill addresses a common gap where many drivers were previously unaware this protection wasn’t included, potentially reducing financial hardship for spouses after serious accidents.
Requires clear and prominent notification. Insurers must now provide upfront, boldface notice on premium statements that this coverage is included unless declined, along with an explanation and the cost. This ensures consumers are informed about both the existence and price of the coverage, supporting more transparent decision-making.
May impact insurance costs and consumer choices. The new default could modestly increase premiums for those who previously did not purchase this coverage, but it also streamlines the process for obtaining important liability protection, especially benefiting those unfamiliar with insurance policy details.
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Who cares
Motor vehicle policyholders
Their policies would include supplemental spousal liability coverage unless they decline it in writing, with notices explaining the coverage and its premium.
Spouses injured in motor vehicle crashes
The coverage would insure against a policyholder’s liability for a spouse’s injuries or death up to the policy’s liability limits, even when recovery requires proving the insured spouse’s fault.
Auto insurers
They would have to provide the coverage unless declined and place boldface notices on the front of premium notices when policies are issued, renewed or amended.
State insurance superintendent
The superintendent would determine the form policyholders must use to decline the coverage in writing.
Headline styles
Include Spousal Auto Coverage
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to insurance
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Add Automatic Spousal Insurance
In Senate Committee · Insurance · Sponsor John A. DeFrancisco
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
31
2017-2018 Regular Sessions
IN ASSEMBLY (Prefiled)
January 4, 2017
Introduced by M. of A. CAHILL, JENNE, WALKER, RAIA, CASTORINA, MURRAY -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 Assembly, 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 reasonable 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-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01606-01-7
A. 31 2
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 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 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 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 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 explanation of such coverage, and the insurer's premium for such coverage.]
§ 2. This act shall take effect on the first of January next succeeding 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.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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