Bill Text: NY A10137 | 2011-2012 | General Assembly | Introduced

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

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-05-09 - referred to insurance [A10137 Detail]

Download: New_York-2011-A10137-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         10137
                                 I N  A S S E M B L Y
                                      May 9, 2012
                                      ___________
       Introduced by M. of A. CAHILL -- 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:
    1    Section  1.  Subsection  (g)  of section 3420 of the insurance law, as
    2  amended by chapter 584 of the laws  of  2002,  is  amended  to  read  as
    3  follows:
    4    (g)  [No]  (1)  EXCEPT  AS OTHERWISE PROVIDED IN PARAGRAPH TWO OF THIS
    5  SUBSECTION, NO policy or contract shall be deemed to insure against  any
    6  liability  of  an  insured because of death of or injuries to his or her
    7  spouse or because of injury to, or destruction of property of his or her
    8  spouse  unless  express  provision  relating  specifically  thereto   is
    9  included  in  the  policy [as provided in paragraphs one and two of this
   10  subsection]. This exclusion shall apply only where the  injured  spouse,
   11  to  be  entitled  to  recover,  must  prove  the culpable conduct of the
   12  insured spouse.
   13    [(1) Upon written request of an insured, and upon payment of a reason-
   14  able premium established in accordance with article twenty-three of this
   15  chapter, an] (2) (A) EVERY insurer issuing or delivering any policy that
   16  satisfies the requirements of article six of the vehicle and traffic law
   17  shall provide coverage IN SUCH POLICY against liability  of  an  insured
   18  because of death of or injuries to his or her spouse up to the liability
   19  insurance  limits  provided  under  such  policy  even where the injured
   20  spouse, to be entitled to recover, must prove the  culpable  conduct  of
   21  the  insured  spouse,  UNLESS THE INSURED ELECTS, IN WRITING AND IN SUCH
   22  FORM AS THE SUPERINTENDENT DETERMINES, TO DECLINE AND REFUSE SUCH COVER-
   23  AGE IN HIS OR HER POLICY. Such insurance  coverage  shall  be  known  as
   24  "supplemental spousal liability insurance".
   25    [(2)]  (B)  Upon  issuance,  RENEWAL  OR  AMENDMENT of a motor vehicle
   26  liability policy that satisfies the requirements of article six  of  the
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD15452-01-2
       A. 10137                            2
    1  vehicle  and traffic law [and that becomes effective on or after January
    2  first, two thousand three, pursuant to regulations  promulgated  by  the
    3  superintendent],  the  insurer shall notify the insured, in writing, [of
    4  the availability of] THAT SUCH POLICY SHALL INCLUDE supplemental spousal
    5  liability  insurance UNLESS THE INSURED DECLINES AND REFUSES SUCH INSUR-
    6  ANCE, IN WRITING AND IN SUCH FORM AS SHALL BE DETERMINED BY  THE  SUPER-
    7  INTENDENT.    Such  notification  shall be contained on the front of the
    8  premium notice in boldface type and include  a  concise  statement  that
    9  supplementary  spousal  coverage is [available] PROVIDED UNLESS DECLINED
   10  BY THE INSURED, an explanation  of  such  coverage,  and  the  insurer's
   11  premium  for  such coverage. [Subsequently, a notification of the avail-
   12  ability of supplementary spousal liability coverage shall be provided at
   13  least once a year in motor vehicle liability policies issued pursuant to
   14  article six of the vehicle and traffic law, including  those  originally
   15  issued  prior  to  January  first,  two thousand three. Such notice must
   16  include a concise  statement  that  supplementary  spousal  coverage  is
   17  available,  an  explanation  of such coverage, and the insurer's premium
   18  for such coverage.]
   19    S 2. This act shall take effect on the first of January next  succeed-
   20  ing  the  date  on  which  it shall have become a law and shall apply to
   21  policies issued, renewed or modified on or  after  such  date;  provided
   22  that,  effective  immediately,  any  actions  necessary to implement the
   23  provisions of this act on its effective date are authorized and directed
   24  to be completed on or before such date.