A02471 Summary:

BILL NO    A02471 

SAME AS    
SAME AS S06574

SPONSOR    Cahill

COSPNSR    

MLTSPNSR   

Amd S3420, Ins L

Requires motor vehicle liability insurance policies to include supplemental
spousal liability coverage unless the insured declines such coverage in
writing.
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A02471 Actions:

BILL NO    A02471 

01/16/2015 referred to insurance
01/06/2016 referred to insurance
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A02471 Votes:

There are no votes for this bill in this legislative session.
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A02471 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2471
 
SPONSOR: Cahill
  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 supple- mental spousal liability insurance coverage equal to bodily injury liability coverage, unless the insured specifically rejects such cover- age 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 insur- ance 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 supple- mental spousal liability insurance, equal to the bodily injury liability insurance coverage they select, unless they affirmatively elect to reject coverage.   PRIOR LEGISLATIVE HISTORY: 2013-2014: A.1055 - Referred to Insurance 2011-2012: A.10137 - Referred to Insurance   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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A02471 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2471
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 16, 2015
                                       ___________
 
        Introduced by M. of A. CAHILL -- 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  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Subsection  (g)  of section 3420 of the insurance law, as
     2  amended by chapter 584 of the laws  of  2002,  is  amended  to  read  as
     3  follows:
     4    (g)  [No]  (1)  Except  as otherwise provided in paragraph two of this
     5  subsection, no policy or contract shall be deemed to insure against  any
     6  liability  of  an  insured because of death of or injuries to his or her
     7  spouse or because of injury to, or destruction of property of his or her
     8  spouse  unless  express  provision  relating  specifically  thereto   is
     9  included  in  the  policy [as provided in paragraphs one and two of this
    10  subsection]. This exclusion shall apply only where the  injured  spouse,
    11  to  be  entitled  to  recover,  must  prove  the culpable conduct of the
    12  insured spouse.
    13    [(1) Upon written request of an insured, and upon payment of a reason-
    14  able premium established in accordance with article twenty-three of this
    15  chapter, an] (2) (A) Every insurer issuing or delivering any policy that
    16  satisfies the requirements of article six of the vehicle and traffic law
    17  shall provide coverage in such policy against liability  of  an  insured
    18  because of death of or injuries to his or her spouse up to the liability
    19  insurance  limits  provided  under  such  policy  even where the injured
    20  spouse, to be entitled to recover, must prove the  culpable  conduct  of
    21  the  insured  spouse,  unless the insured elects, in writing and in such
    22  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.
                                                                   LBD06138-01-5

        A. 2471                             2
 
     1  age in his or her policy. Such insurance  coverage  shall  be  known  as
     2  "supplemental spousal liability insurance".
     3    [(2)]  (B)  Upon  issuance,  renewal  or  amendment of a motor vehicle
     4  liability policy that satisfies the requirements of article six  of  the
     5  vehicle  and traffic law [and that becomes effective on or after January
     6  first, two thousand three, pursuant to regulations  promulgated  by  the
     7  superintendent],  the  insurer shall notify the insured, in writing, [of
     8  the availability of] that such policy shall include supplemental spousal
     9  liability insurance unless the insured declines and refuses such  insur-
    10  ance,  in  writing and in such form as shall be determined by the super-
    11  intendent.  Such notification shall be contained on  the  front  of  the
    12  premium  notice  in  boldface  type and include a concise statement that
    13  supplementary spousal coverage is [available] provided  unless  declined
    14  by  the  insured,  an  explanation  of  such coverage, and the insurer's
    15  premium for such coverage. [Subsequently, a notification of  the  avail-
    16  ability of supplementary spousal liability coverage shall be provided at
    17  least once a year in motor vehicle liability policies issued pursuant to
    18  article  six  of the vehicle and traffic law, including those originally
    19  issued prior to January first, two  thousand  three.  Such  notice  must
    20  include  a  concise  statement  that  supplementary  spousal coverage is
    21  available, an explanation of such coverage, and  the  insurer's  premium
    22  for such coverage.]
    23    §  2. This act shall take effect on the first of January next succeed-
    24  ing the date on which it shall have become a  law  and  shall  apply  to
    25  policies  issued,  renewed  or  modified on or after such date; provided
    26  that, effective immediately, any  actions  necessary  to  implement  the
    27  provisions of this act on its effective date are authorized and directed
    28  to be completed on or before such date.
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