This section implements Insurance Law section 3420(a) and
(g), as amended by chapter 584 of the Laws of 2002, chapter 735 of the Laws of
2022, and chapter 108 of the Laws of 2023, which requires motor vehicle
liability insurers to provide supplemental spousal liability insurance to all
policyholders in New York State who are covered under motor vehicle liability
insurance policies that satisfy the requirements of New York Vehicle and
Traffic Law article 6, unless a named insured elects, in writing, and in such
form as the superintendent determines, to decline and refuse such insurance in
the policy. This requirement applies to all policies issued, renewed, or
modified on or after August 1, 2023, and applies to all policyholders,
regardless of marital status, and regardless of whether the policyholder is a
business entity or natural person. Section 3420(g)(2) provides that a
notification by the insurer to the named insured shall include an explanation
of the coverage and the insurer's premium for the coverage.
(a)
Minimum requirements of SSL
insurance.
(1) Supplemental spousal
liability insurance or SSL insurance means coverage against liability of an
insured because of death of or injuries to the insured's spouse up to the
liability insurance limits provided under the policy even where the injured
spouse, to be entitled to recover, must prove the culpable conduct of the
insured spouse.
(2) SSL insurance
and the requirements of this section shall apply only to the bodily injury
liability coverage under a primary motor vehicle liability insurance policy
that satisfies the requirements of New York Vehicle and Traffic Law article 6
and shall not apply to other coverages under the policy or other types of
policies, such as an umbrella liability or a for hire motor vehicle liability
policy.
(3) If a named insured
elects, in writing, and in such form as the superintendent determines, to
decline and refuse SSL insurance, the policy will not include SSL insurance. An
insurer shall not be required to obtain a written declination at each renewal
or amendment of the policy if a named insured previously submitted a written
declination of SSL insurance. An insurer may obtain an electronic written
declination if the insurer adheres to the requirements of Insurance Law section
3458 regarding electronic notices and documents.
(b)
Notification about SSL
insurance.
(1) An insurer issuing
motor vehicle liability insurance policies that satisfy the requirements of New
York Vehicle and Traffic Law article 6 shall, with all such policies issued,
renewed, or modified on or after August 1, 2023, provide the notification to
the named insureds under the policies that the policies shall include SSL
insurance unless a named insured declines and refuses such insurance in writing
and in such form as determined by the superintendent.
(2) The notification shall be contained on
the front of the premium notice in boldface type and include a concise
statement that supplementary spousal liability insurance is provided unless
declined by a named insured, an explanation of the insurance, and the premium
for the insurance.
(3) For the
purpose of this section, premium notice shall mean any one or more of the
following: declarations page, premium notice, premium bill, installment bill or
any attachment thereto, generally used by the insurer to communicate
information to the insured concerning an insured's coverages and corresponding
premiums.
(4) This notification
shall be provided upon issuance, renewal, or amendment of policies.
(5) For the purpose of this section,
amendment or modified means a change in the policy coverage or underlying risk
characteristics that results in a revised policy premium, such as the addition
or removal of a vehicle, driver, or any coverage under the policy, or a change
in the principal garaging of the insured's vehicle. Amendment or modified shall
not mean purely ministerial changes, such as changes to the manner or timing of
payment or corrections of typographical errors.
(6) An insurer may use the following sample
notification or its substantive equivalent:
SUPPLEMENTAL SPOUSAL LIABILITY COVERAGE
New York State law requires an insurer issuing or
delivering a policy that satisfies the requirements of New York Vehicle and
Traffic Law article 6 to provide supplemental spousal liability insurance,
unless a named insured elects, in writing, to decline and refuse such insurance
in the policy.
Supplemental spousal liability insurance provides bodily
injury liability coverage under a motor vehicle insurance policy when a person
is injured or killed in a motor vehicle accident caused by the negligence of
the person's spouse.
This coverage is included within the policy's bodily
injury liability limits and does not increase the amount of those limits. For
example:
Insured's bodily injury policy coverage limit:
$100,000/$300,000
Insured's bodily injury damage claim paid to spouse:
$75,000
Insured's bodily injury policy coverage limit available
to all other claimants subject to a maximum of $100,000 per person:
$225,000
This example assumes the spouse and other claimants
involved in the accident have a right to sue the insured for economic loss or
for non-economic loss (i.e., pain and suffering) sustained as a result of a
'serious injury' as defined in Insurance Law section 5102(d). It must also have
been shown that there was negligence on the part of the insured.
If you decline this coverage, then the injured or
deceased spouse would not be covered under the bodily injury liability coverage
in the policy.
The additional premium for supplemental spousal
liability insurance is $XX.XX. If you do not decline or have not previously
declined this coverage in writing, supplemental spousal liability insurance is
automatically included in your motor vehicle insurance policy. If the
supplemental spousal liability insurance is not declined in writing, failure to
pay the supplemental spousal liability insurance premium may result in the
issuance of a policy cancellation notice for nonpayment of premium.
(7) An insurer may specify the supplemental
spousal liability insurance premium in the declination form or the notification
as a percentage of the bodily injury premium if the declination form or
notification clearly includes all the relevant information so that the named
insured can reasonably ascertain the dollar amount from the declination form or
notification, including the bodily injury premium. If the bodily injury premium
is listed on a different page of the notification (i.e., on the declarations
page), then the notification shall direct the named insured to such other page.
If the policy provides coverage for more than one motor vehicle and the bodily
injury premium is separately stated for each motor vehicle, the declination
form or notification shall clearly state that the premium for supplemental
spousal liability insurance would be a percentage of the sum of all the bodily
injury premiums.
