NY State Senate Bill 2019-S3065

Senate Bill S3065

2019-2020 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 08, 2020	referred to insurance
Feb 01, 2019	referred to insurance

2019-S3065 (ACTIVE) - Details

See Assembly Version of this Bill:: A205
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
2015-2016: S1158, S6574, A2471
2017-2018: S3141, A31
2021-2022: S9367, A1029

2019-S3065 (ACTIVE) - Summary

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

2019-S3065 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3065

SPONSOR: ORTT
 
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 vehi-
cle

 
PURPOSE OR GENERAL IDEA OF BILL:

Provides that insurance companies must provide motorists with supple-
mental spousal liability insurance coverage equal to bodily injury
liability coverage, unless the insured specifically rejects such cover-
age 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 insur-
ance 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 supple-
mental 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;
S.1912 of 2014;
S.1558/A.2471 of 2015;
S.6574/A.2471 of 2016
S.3141/A.31 of 2017-2018 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.

2019-S3065 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3065
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 1, 2019
                                ___________
 
 Introduced  by  Sen.  ORTT  --  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.
                                                            LBD00053-01-9

 S. 3065                             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. Effective
 immediately, the addition, amendment and/or repeal of any rule or  regu-
 lation  necessary  for  the  implementation of this act on its effective
 date are authorized to be made and completed on or before such effective
 date.

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