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A09407 Actions:

BILL NOA09407A
 
03/13/2024referred to insurance
03/20/2024reported
03/21/2024advanced to third reading cal.379
03/25/2024passed assembly
03/25/2024delivered to senate
03/25/2024REFERRED TO INSURANCE
04/15/2024recalled from senate
04/15/2024RETURNED TO ASSEMBLY
04/15/2024vote reconsidered - restored to third reading
04/15/2024amended on third reading 9407a
05/06/2024repassed assembly
05/06/2024returned to senate
05/06/2024RECOMMITTED TO INSURANCE
05/15/2024SUBSTITUTED FOR S9021A
05/15/20243RD READING CAL.801
05/15/2024PASSED SENATE
05/15/2024RETURNED TO ASSEMBLY
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A09407 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9407A
 
SPONSOR: Weprin
  TITLE OF BILL: An act to amend the insurance law, in relation to supplemental spousal liability insurance   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to require auto insurers to provide supple- mental spousal liability insurance to insureds that have a spouse and to insureds upon written request.   SUMMARY OF SPECIFIC PROVISIONS: This bill would amend the supplemental spousal liability insurance requirements under the insurance law by making such coverage an opt-out endorsement only for insureds that indicate on an application for insur- ance that they have a spouse. Supplemental spousal liability insurance shall also be provided to insureds upon written request. This bill would require insurers to notify insureds upon policy issuance, renewal or amendment whether their policy includes supplemental spousal liabil- ity coverage or, if not, the availability of such coverage.   JUSTIFICATION: Under the current insurance law, automobile insurance policies issued to drivers licensed in New York state must include supplemental spousal liability coverage. This policy endorsement provides coverage against liability of an insured because of death to or injuries to their spouse up to the liability insurance limits provided under such policy. By limiting the automatic application of supplemental spousal liability insurance to the policies of insureds that indicate they have a spouse, this bill ensures that only those that need such coverage would automat- ically receive it. In addition, this bill gives any insured driver the option to purchase supplemental spousal liability insurance coverage upon written request and requires insurers to notify insureds of its availability upon policy issuance and annually thereafter.   PRIOR LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect on the one hundred eightieth day after it shall have become a law and shall apply to policies issued, renewed or modified on or after such date; provided, however that the amendments to subsection (g) of section 3420 of the insurance law made by section one of this act shall be subject to the expiration and reversion of such subsection pursuant to section 2 of chapter 735 of the laws of 2022, as amended.
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A09407 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         9407--A
                                                                Cal. No. 379
 
                   IN ASSEMBLY
 
                                     March 13, 2024
                                       ___________
 
        Introduced  by  M.  of A. WEPRIN, LEVENBERG -- read once and referred to
          the Committee on Insurance -- advanced to a third reading,  passed  by
          Assembly  and  delivered to the Senate, recalled from the Senate, vote
          reconsidered, bill amended, ordered reprinted, retaining its place  on
          the order of third reading

        AN  ACT  to amend the insurance law, in relation to supplemental spousal
          liability insurance
 
          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 735 of the laws  of  2022,  is  amended  to  read  as
     3  follows:
     4    (g)  (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  the insured's spouse or because of injury to, or destruction of property
     8  of [his or her] the insured's spouse unless express  provision  relating
     9  specifically  thereto  is  included  in the policy. This exclusion shall
    10  apply only where the injured spouse, to be  entitled  to  recover,  must
    11  prove the culpable conduct of the insured spouse.
    12    (2)  (A) [Every] (i) Upon issuance of a motor vehicle liability policy
    13  and payment of a reasonable premium established in accordance with arti-
    14  cle twenty-three of this chapter, an insurer issuing or  delivering  any
    15  policy that satisfies the requirements of article six of the vehicle and
    16  traffic  law and is subject to section three thousand four hundred twen-
    17  ty-five of this article shall provide coverage in such a  policy  issued
    18  to  a  first  named  insured  who  has indicated that such insured has a
    19  spouse on the insurance application, against  liability  of  an  insured
    20  because  of death of or injuries to [his or her] the insured's spouse up
    21  to the liability insurance limits provided under such policy even  where
    22  the  injured  spouse, to be entitled to recover, must prove the culpable
    23  conduct of the insured  spouse,  unless  [the]  a  first  named  insured
    24  elects, in writing and in such form as the superintendent determines, to
    25  decline  and  refuse  such  coverage  in  [his  or  her] the first named
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14782-05-4

        A. 9407--A                          2

     1  insured's policy. Such insurance coverage shall  be  known  as  "supple-
     2  mental spousal liability insurance".
     3    (ii) Upon written request of an insured, and upon payment of a reason-
     4  able premium established in accordance with article twenty-three of this
     5  chapter,  an insurer issuing or delivering any policy that satisfies the
     6  requirements of article six of the vehicle and traffic law,  other  than
     7  as specified in item (i) of this subparagraph, shall provide coverage in
     8  such  a  policy  against  liability of an insured because of death of or
     9  injuries to the insured's spouse up to the  liability  insurance  limits
    10  provided under such policy even where the injured spouse, to be entitled
    11  to recover, must prove the culpable conduct of the insured spouse.
    12    (B)  (i)  Upon  issuance[,  renewal  or  amendment] of a motor vehicle
    13  liability policy that satisfies the requirements of article six  of  the
    14  vehicle  and  traffic  law and is subject to section three thousand four
    15  hundred twenty-five of this article, the insurer shall  notify  [the]  a
    16  first  named insured who has indicated that such insured has a spouse on
    17  the insurance application, in writing, that such  policy  shall  include
    18  supplemental  spousal  liability  insurance  unless  [the] a first named
    19  insured declines and refuses such insurance, in writing and in such form
    20  as shall be determined by the superintendent. Such notification shall be
    21  contained on the front of  the  premium  notice  in  boldface  type  and
    22  include  a  concise  statement that [supplementary] supplemental spousal
    23  liability coverage is provided unless declined by [the]  a  first  named
    24  insured,  an explanation of such coverage, and the insurer's premium for
    25  such coverage.
    26    (ii) Upon renewal or amendment of a  motor  vehicle  liability  policy
    27  that  satisfies the requirements of article six of the vehicle and traf-
    28  fic law and has supplemental spousal liability coverage under the  poli-
    29  cy,  the  insurer  shall provide a notification to a first named insured
    30  that includes a concise statement that such policy includes supplemental
    31  spousal liability coverage unless declined by a first named  insured  in
    32  writing  and  in such form as shall be determined by the superintendent,
    33  an explanation of such coverage, and  the  insurer's  premium  for  such
    34  coverage.  Such  notification  shall  be  contained  on the front of the
    35  premium notice in boldface type.
    36    (iii) A written declination shall apply to subsequent policy  renewals
    37  unless  a  first  named  insured requests supplemental spousal liability
    38  insurance.
    39    (C) A notification of the availability of supplemental spousal liabil-
    40  ity insurance shall be provided upon policy issuance, other than for the
    41  policies to which the notification requirement in item (i)  of  subpara-
    42  graph  (B)  of  this paragraph applies, and at least once a year for all
    43  motor vehicle liability policies that satisfy the requirements of  arti-
    44  cle  six  of  the  vehicle  and  traffic  law, where the policy does not
    45  already provide supplemental spousal liability insurance.   Such  notice
    46  shall  be  contained on the front of the premium notice in boldface type
    47  and include a concise  statement  that  supplemental  spousal  liability
    48  coverage  is  available, an explanation of such coverage, and the insur-
    49  er's premium for such coverage.
    50    § 2. This act shall take effect on the one hundred eightieth day after
    51  it shall have become a law and   shall   apply   to  policies    issued,
    52  renewed  or  modified  on or after such date; provided, however that the
    53  amendments to subsection (g) of section 3420 of the insurance  law  made
    54  by section one of this act shall be subject to the expiration and rever-
    55  sion of such subsection pursuant to section 2 of chapter 735 of the laws
    56  of 2022, as amended.
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