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

                                  1055

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

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:

  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-

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

                                                           LBD04011-01-3

A. 1055                             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  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.