S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8003
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             September 1, 2023
                                ___________
 
 Introduced  by  M.  of A. HAWLEY, REILLY, BYRNES, BLANKENBUSH, DiPIETRO,
   GALLAHAN, J. M. GIGLIO, SMULLEN, E. BROWN -- read once and referred to
   the Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to  supplemental  spousal
   liability insurance for married insureds

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 2 of subsection (g) of section 3420 of the insur-
 ance law, as amended by chapter 735 of the laws of 2022, is  amended  to
 read as follows:
   (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] A MARRIED
 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 MARRIED insured elects, in
 writing and in such form as the superintendent  determines,  to  decline
 and  refuse  such coverage in his or her policy. Such insurance coverage
 shall be known as "supplemental spousal liability insurance".
   (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,  the insurer shall notify the MARRIED insured, in writing,
 that such policy shall include supplemental spousal liability  insurance
 unless the MARRIED insured declines and refuses such insurance, in writ-
 ing  and in such form as shall be determined by the superintendent. 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 provided unless declined by the MARRIED insured, an explana-
 tion of such coverage, and the insurer's premium for such coverage.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13116-01-3
 A. 8003                             2
              

 
   (C)  THE  INSURER'S  REQUIREMENTS IN SUBPARAGRAPHS (A) AND (B) OF THIS
 PARAGRAPH SHALL APPLY ONLY TO POLICIES ISSUED OR DELIVERED TO AN INSURED
 WHO IS MARRIED.  AN  INSURER  SHALL  NOT  PROVIDE  SUPPLEMENTAL  SPOUSAL
 LIABILITY  INSURANCE  COVERAGE  IN  ANY  POLICY TO AN INSURED WHO IS NOT
 MARRIED,  UNLESS  THE SINGLE OR UNMARRIED INSURED ELECTS, IN WRITING AND
 IN SUCH FORM AS THE SUPERINTENDENT DETERMINES,  TO  ACCEPT  AND  REQUEST
 SUCH COVERAGE IN HIS OR HER POLICY.
   (D)  UPON  ISSUANCE, RENEWAL OR AMENDMENT OF A MOTOR VEHICLE LIABILITY
 POLICY THAT SATISFIES THE REQUIREMENTS OF ARTICLE SIX OF THE VEHICLE AND
 TRAFFIC LAW, THE INSURER SHALL NOTIFY THE SINGLE OR  UNMARRIED  INSURED,
 IN  WRITING,  THAT  SUCH  POLICY  SHALL NOT INCLUDE SUPPLEMENTAL SPOUSAL
 LIABILITY INSURANCE UNLESS THE SINGLE OR UNMARRIED INSURED  ACCEPTS  AND
 REQUESTS  SUCH INSURANCE, IN WRITING AND IN SUCH FORM AS SHALL BE DETER-
 MINED BY THE SUPERINTENDENT. 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 NOT PROVIDED UNLESS
 REQUESTED BY THE SINGLE OR UNMARRIED INSURED,  AN  EXPLANATION  OF  SUCH
 COVERAGE  INCLUDING  A  STATEMENT  THAT  SUCH  COVERAGE DOES NOT BENEFIT
 INSUREDS THAT ARE NOT MARRIED, AND THE  SINGLE  OR  UNMARRIED  INSURER'S
 PREMIUM FOR SUCH COVERAGE.
   §  2.  Paragraphs  1  and  2  of subsection (g) of section 3420 of the
 insurance law, as amended by chapter  584  of  the  laws  of  2002,  are
 amended and two new paragraphs 3 and 4 are added to read as follows:
   (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 insurer issuing or delivering any policy that satisfies  the
 requirements of article six of the vehicle and traffic law shall provide
 coverage against liability of [an] A MARRIED 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.  Such
 insurance  coverage  shall  be  known as "supplemental spousal liability
 insurance".
   (2) Upon issuance 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,  pursu-
 ant  to regulations promulgated by the superintendent, the insurer shall
 notify the MARRIED insured, in writing, of the availability  of  supple-
 mental spousal liability insurance. 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,  an
 explanation  of such coverage, and the insurer's premium for such cover-
 age. Subsequently, a notification of the availability  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 explana-
 tion of such coverage, and the insurer's premium for such coverage.
   (3) THE INSURER'S REQUIREMENTS IN  PARAGRAPHS  ONE  AND  TWO  OF  THIS
 SUBSECTION  SHALL  APPLY  ONLY  TO  POLICIES  ISSUED  OR DELIVERED TO AN
 INSURED WHO IS MARRIED. AN INSURER SHALL NOT PROVIDE SUPPLEMENTAL SPOUS-
 AL LIABILITY INSURANCE COVERAGE IN ANY POLICY TO AN INSURED WHO  IS  NOT
 MARRIED,  UNLESS  THE SINGLE OR UNMARRIED INSURED ELECTS, IN WRITING AND
 IN SUCH FORM AS THE SUPERINTENDENT DETERMINES,  TO  ACCEPT  AND  REQUEST
 SUCH COVERAGE IN HIS OR HER POLICY.
 A. 8003                             3
 
   (4)  UPON  ISSUANCE, RENEWAL OR AMENDMENT OF A MOTOR VEHICLE LIABILITY
 POLICY THAT SATISFIES THE REQUIREMENTS OF ARTICLE SIX OF THE VEHICLE AND
 TRAFFIC LAW, THE INSURER SHALL NOTIFY THE SINGLE OR  UNMARRIED  INSURED,
 IN  WRITING,  THAT  SUCH  POLICY  SHALL NOT INCLUDE SUPPLEMENTAL SPOUSAL
 LIABILITY  INSURANCE  UNLESS THE SINGLE OR UNMARRIED INSURED ACCEPTS AND
 REQUESTS SUCH INSURANCE, IN WRITING AND IN SUCH FORM AS SHALL BE  DETER-
 MINED BY THE SUPERINTENDENT. 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  NOT  PROVIDED  UNLESS
 REQUESTED  BY  THE  SINGLE  OR UNMARRIED INSURED, AN EXPLANATION OF SUCH
 COVERAGE INCLUDING A STATEMENT  THAT  SUCH  COVERAGE  DOES  NOT  BENEFIT
 INSUREDS  THAT  ARE  NOT  MARRIED, AND THE SINGLE OR UNMARRIED INSURER'S
 PREMIUM FOR SUCH COVERAGE.
   § 3. This act shall take effect on the one hundred twentieth day after
 it shall have become a law; provided, however  that  the  amendments  to
 paragraph  two  of  subsection  (g) of section 3420 of the insurance law
 made by section one of this act shall be subject to the  expiration  and
 reversion of such subsection pursuant to section 2 of chapter 735 of the
 laws  of 2022, as amended, when upon such date the provisions of section
 two of this act shall take effect.