NY State Senate Bill 2023-S7651

Current 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to insurance
Sep 13, 2023	referred to rules

co-Sponsors

2023-S7651 (ACTIVE) - Details

See Assembly Version of this Bill:: A8003
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §3420, Ins L

2023-S7651 (ACTIVE) - Summary

Requires that policy provisions regarding supplemental spousal liability insurance apply only to policies issued or delivered to an insured who is married.

2023-S7651 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7651

SPONSOR: BORRELLO
 
TITLE OF BILL:

An act to amend the insurance law, in relation to supplemental spousal
liability insurance for married insureds

 
PURPOSE OR GENERAL IDEA 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 and that are not married.

 
SUMMARY OF PROVISIONS:

This bill would amend subsection (g) of section 3420 of the insurance
law to provide that only auto insurance policies issued and delivered to
married insured drivers must include supplemental spousal liability
insurance coverage equal to the insured's bodily injury liability insur-
ance coverage. Such coverage will be provided to single or unmarried

insureds only if such insured drivers accept and request such supple-
mental spousal insurance coverage in writing.

 
JUSTIFICATION:

This bill would amend the insurance law to prevent single or unmarried
insured drivers in New York State from acquiring, by default, costly and
unneeded supplemental spousal liability insurance coverage that does not
benefit them. In 2022, the State Legislature passed legislation to
change the requirement that New York drivers, explicitly request in
writing, or "opt-in" to additional supplemental spousal liability insur-
ance coverage on their auto insurance policies; and instead, required
insured drivers to request in writing, or "opt-out" of such extra insur-
ance coverage.  Many voiced opposition to amending insurance law to
require drivers to "opt-out" of such coverage, as this legislation
placed yet another burdensome requirement on both insurance companies
and inured drivers in New York State. However, this legislation has
proven to be worse than many anticipated, as such "opt-out" requirements
have been placed on all drivers, regardless of their marital status.
Although supplemental spousal liability insurance coverage is of no
benefit to drivers that are unmarried, such coverage, as well as more
expensive insurance premiums, will be provided to all drivers that do
not explicitly decline in writing, such additional coverage. Thus, any
unmarried driver that mistakenly fails to "opt-out" of such coverage
when his or her auto insurance policy is renewed, will be forced to pay
for such insurance, even though it does not benefit him or her. Rather
than further burden New York's unmarried drivers, this bill amends
insurance law to ensure that single or unmarried insured drivers in New
York will not receive supplemental spousal liability insurance coverage,
unless they explicitly accept and request, or "opt-in" to such insurance
coverage in writing.

 
PRIOR LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.

 
EFFECTIVE DATE:
This act shall take effect one hundred and twenty days after it shall
become law. 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.

2023-S7651 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7651
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                            September 13, 2023
                                ___________
 
 Introduced  by Sen. BORRELLO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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.
   (C)  THE  INSURER'S  REQUIREMENTS IN SUBPARAGRAPHS (A) AND (B) OF THIS
 PARAGRAPH SHALL APPLY ONLY TO POLICIES ISSUED OR DELIVERED TO AN INSURED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13116-01-3

 S. 7651                             2
 
 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.
   (4) UPON ISSUANCE, RENEWAL OR AMENDMENT OF A MOTOR  VEHICLE  LIABILITY
 POLICY THAT SATISFIES THE REQUIREMENTS OF ARTICLE SIX OF THE VEHICLE AND
 S. 7651                             3
 
 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.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S7651

Sponsored By

Current Bill Status - In Senate Committee Insurance Committee

co-Sponsors

2023-S7651 (ACTIVE) - Details

2023-S7651 (ACTIVE) - Summary

2023-S7651 (ACTIVE) - Sponsor Memo

2023-S7651 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7651

Share this bill

Sponsored By

George M. Borrello

Current Bill Status - In Senate Committee Insurance Committee

co-Sponsors

Peter Oberacker

2023-S7651 (ACTIVE) - Details

2023-S7651 (ACTIVE) - Summary

2023-S7651 (ACTIVE) - Sponsor Memo

2023-S7651 (ACTIVE) - Bill Text download pdf

Comments