|SAME AS||SAME AS S06574|
|Amd S3420, Ins L|
|Requires motor vehicle liability insurance policies to include supplemental spousal liability coverage unless the insured declines such coverage in writing.|
|01/16/2015||referred to insurance|
|01/06/2016||referred to insurance|
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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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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 this10 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 this15 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. LBD06138-01-5A. 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 January6 first, two thousand three, pursuant to regulations promulgated by the7 superintendent], the insurer shall notify the insured, in writing, [ of8 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 at17 least once a year in motor vehicle liability policies issued pursuant to18 article six of the vehicle and traffic law, including those originally19 issued prior to January first, two thousand three. Such notice must20 include a concise statement that supplementary spousal coverage is21 available, an explanation of such coverage, and the insurer's premium22 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.