S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    31
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced by M. of A. CAHILL, JENNE, WALKER, RAIA, CASTORINA, MURRAY --
   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.
                                                            LBD01606-01-7

 A. 31                               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.]
   §  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.