Sec. 60-1.6. Supplemental spousal liability insurance

This section implements section 3420(a) and (g) of the Insurance Law, as amended by chapter 584 of the Laws of 2002, which requires motor vehicle liability insurers to offer supplemental spousal liability (SSL) insurance to all policyholders in New York State who are covered under motor vehicle liability insurance policies that satisfy the requirements of article 6 of the New York Vehicle and Traffic Law. This requirement applies to all policies issued or renewed that become effective on and after January 1, 2003. Section 3420(g)(2) provides that, pursuant to regulations promulgated by the Superintendent of Financial Services, a notification by the insurer to the 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 means coverage against liability of an insured because of death of or injuries to his or her 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 article 6 of the New York Vehicle and Traffic Law and shall not apply to other coverages under the policy or other types of policies, such as an umbrella liability policy.

(3) If an insurer has offered to the insured the option to purchase SSL insurance and the insured has not opted to purchase this insurance, the policy will continue to not include spousal liability coverage.

(b) Notification about SSL insurance.

(1) An insurer issuing motor vehicle liability insurance policies that satisfy the requirements of article 6 of the New York Vehicle and Traffic Law shall, with all such policies issued or renewed that become effective on and after January 1, 2003, provide the notification to the named insureds under the policies of the availability of the optional SSL insurance.

(2) The notification must be contained on the front of the premium notice in boldface type and include a concise statement that supplementary spousal liability insurance is available, 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 with all new policies and thereafter annually with all renewal policies.

(5) An insurer may use the following sample notification or its substantive equivalent:

SUPPLEMENTAL SPOUSAL LIABILITY COVERAGE

New York State law requires that upon written request of an insured, and upon payment of the premium, an insurer issuing or delivering a policy that satisfies the requirements of article 6 of the New York Vehicle and Traffic Law shall provide Supplemental Spousal Liability Insurance coverage.

Supplemental spousal liability insurance provides bodily injury liability coverage under a motor vehicle insurance policy to cover the liability of an insured spouse because of the death of or injury to his or her spouse, even where the injured spouse must prove the culpable conduct of the insured 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 section 5102(d) of the Insurance Law. It must also have been shown that there was negligence on the part of the insured.

The additional premium for SSL coverage is $XX.XX. If you do not elect to purchase this coverage and do not remit the additional premium, SSL coverage is not included in your motor vehicle insurance policy.