What's happening
This bill requires auto insurers to automatically include supplemental spousal liability coverage unless the insured declines it in writing.
Why it matters
Greater Protection for Married Drivers. By automatically including supplemental spousal liability coverage unless declined in writing, the bill ensures married drivers are less likely to face financial hardship if one spouse is injured by the other in a car accident—a scenario previously excluded from most policies without special request.
Consumer Awareness and Transparency. The bill mandates clear, prominent notification about the inclusion and cost of this coverage in premium notices, helping consumers make more informed decisions about their insurance and increasing transparency in the policy’s terms.
Shifts the Default, Reducing Administrative Barriers. Instead of requiring customers to opt in (which many were unaware they could do), insurers now must provide the coverage by default, making it more likely that New Yorkers have this important protection unless they actively refuse it.
Potential Impact on Insurance Costs and Claims. This change could lead to slightly higher premiums for some, but it also broadens the pool of people covered, which may affect how insurance companies manage risk, price policies, and process claims involving spouses.
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Who cares
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Add Automatic Spousal Insurance
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
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.
Include Spousal Auto Coverage
In Assembly Committee · Insurance · Sponsor Kevin Cahill
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3141
2017-2018 Regular Sessions
IN SENATE
January 19, 2017
Introduced by Sen. DeFRANCISCO -- read twice and ordered printed, and when printed to be committed 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
S. 3141 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.
Sponsor's memo
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
S.7223 of 2011; S.1912 of 2014; S.1558/A.2471 of 2015; S.6574/A.2471 of 2016
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.
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