NY State Senate Bill 2011-S7223

Senate Bill S7223

2011-2012 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Senate Committee Insurance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 02, 2012	referred to insurance

2011-S7223 (ACTIVE) - Details

See Assembly Version of this Bill:: A10137
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §3420, Ins L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S1912, A1055
2015-2016: S1158, S6574, A2471
2017-2018: S3141, A31
2019-2020: S3065, A205
2021-2022: S9367, A1029

2011-S7223 (ACTIVE) - Summary

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

2011-S7223 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S7223

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:
None.

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.

2011-S7223 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7223

                            I N  S E N A T E

                               May 2, 2012
                               ___________

Introduced  by  Sen.  LIBOUS -- 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 ASSEM-
BLY, 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 reason-
able 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-
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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD15452-01-2

S. 7223                             2

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 INSUR-
ANCE, IN WRITING AND IN SUCH FORM AS SHALL BE DETERMINED BY  THE  SUPER-
INTENDENT.    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 avail-
ability 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.]
  S 2. This act shall take effect on the first of January next  succeed-
ing  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.

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