BILL NUMBER: S9021A
SPONSOR: BRESLIN
 
TITLE OF BILL:
An act to amend the insurance law, in relation to supplemental spousal
liability insurance
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would require motor vehicle insurers to offer supplemental
spousal liability coverage to policyholders who have indicated that they
are married and that request such coverage.
 
SUMMARY OF SPECIFIC PROVISIONS:
This bill seeks to update the insurance law regarding supplemental
spousal liability coverage for motor vehicles.
For married policyholders, the bill maintains this coverage as an opt-
out option on insurance applications upon issuance of a policy. The
insurer will notify the policyholder that their policy includes this
coverage unless they decline it.
Upon renewal or amendment of a motor vehicle liability policy, the
insurer shall notify a policyholder that opted for supplemental spousal
liability that such coverage is included in the policy unless they
decline it.
Once declined, the policyholder will not be notified of the availability
of such coverage unless they subsequently request it.
For all other policyholders, the insurer shall notify them upon issuance
of the policy and at least once a year of the availability of supple-
mental spousal liability coverage.
 
JUSTIFICATION:
New York currently mandates supplemental spousal liability coverage on
all auto insurance policies unless the policyholder declines. This bill
proposes a more focused approach. For policyholders who indicate they
are married, this coverage would automatically be included unless they
decline it. All other policyholders, however, can still request the
coverage and opt-in if they wish to do so.
Additionally, to ensure transparency and enact a more targeted approach
to notifications regarding this coverage, insurers would be required to
notify policyholders at certain points in time about the availability or
applicability of such coverage.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law and shall apply to policies issued, renewed or
modified on or after such date; provided, however that the amendments to
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.

Statutes affected:
S9021: 3420 insurance law, 3420(g) insurance law
S9021A: 3420 insurance law, 3420(g) insurance law