NY State Senate Bill 2015-S1158

Senate Bill S1158

2015-2016 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
Jan 09, 2015	referred to insurance

2015-S1158 (ACTIVE) - Details

See other versions of this Bill:: A2471 ,; S6574 ,
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §3420, Ins L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S7223, A10137
2013-2014: S1912, A1055
2017-2018: S3141, A31
2019-2020: S3065, A205
2021-2022: S9367, A1029

2015-S1158 (ACTIVE) - Summary

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

2015-S1158 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S1158

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:

S.7223 of 2011: Referred to Insurance
S.1912 of 2014: 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.

2015-S1158 (ACTIVE) - Bill Text download pdf

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

                                  1158

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             January 9, 2015
                               ___________

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-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06138-01-5

S. 1158                             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.

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