What's happening
This bill requires auto insurers to automatically include supplemental spousal liability coverage unless the insured declines in writing.
Why it matters
Expands automatic legal protection for spouses. By requiring auto insurers to include supplemental spousal liability coverage unless actively declined, the bill ensures many more married drivers are protected against liability for injuries to their spouses in vehicle accidents—potentially reducing devastating financial impacts on households after serious crashes.
Shifts the burden of decision-making. The default is now *inclusion* of spousal coverage, not exclusion. Consumers must take explicit written action to opt out, making it likely that far more people will have this coverage, even if they’re unaware of the details or forget to request it.
Increases transparency and consumer awareness. The legislation mandates that premium notices clearly explain that the coverage is included unless declined, along with its cost and explanation. This could help policyholders better understand their protections and make more informed insurance choices.
May affect insurance premiums and legal claims. Because more policies will include this coverage by default, premiums might rise slightly to reflect the broader risk pool. At the same time, it could lead to more spousal injury claims being covered, shifting costs but also potentially reducing uncompensated losses after accidents involving married couples.
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Who cares
Auto insurers
They would have to include supplemental spousal liability coverage unless rejected in writing and disclose the coverage and its premium on the front of premium notices at issuance, renewal or amendment.
Motor vehicle policyholders
They would receive supplemental spousal liability coverage by default and would need to decline it in writing to exclude it from their policies.
Spouses injured in motor vehicle crashes
The coverage would insure liability for their injuries or death up to policy liability limits even when recovery requires proving the insured spouse’s culpable conduct.
State insurance superintendent
The superintendent would determine the form policyholders must use to decline the coverage.
Headline styles
Require Spousal Auto Coverage
Plain English, a few words. Used as the page title.
Sponsors
2 Co-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.
Require Spousal Auto Coverage
In Senate Committee · Insurance · Sponsor Robert Ortt
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
205
2019-2020 Regular Sessions
IN ASSEMBLY (Prefiled)
January 9, 2019
Introduced by M. of A. CAHILL, RAIA, WALKER -- 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.
LBD00053-01-9
A. 205 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. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.