A trio of lesser known—but notable—insurance bills passed the New York state Legislature in the waning days of the 2022 legislation session, which could have an impact on your agency and clients.
Supplemental spousal liability coverage
S.9367/A.1029–Sponsored by Sen. Neil Breslin, D-44, and Assemblyman Kevin Cahill, D-103. This bill would require personal auto insurance carriers to include supplemental spousal liability coverage in policies unless an insured declines such coverage in writing. The coverage must be offered at the same limits as bodily injury liability coverage.
Currently, insurance companies are only required to offer supplemental spousal liability coverage if an insured requests it. This bill would invert that by mandating the coverage unless there is a clear refusal.
If signed by the governor, the law would go in effect on Jan. 1, 2023, and it would apply to all policies issued, renewed, or modified on or after that date.
Notice of the flood risk and flood history of a leased premises
S.54372-A/A.7876–Sponsored by Sen. Brad Hoylman, D-27, and Assemblyman Robert Carrol, D-44. This bill would require that residential leases provide notice of the flood risk and flood history of a leased premises, as well as a notice to tenants of the availability of flood insurance for renters.
Under the bill, a residential lease must include information as to whether the leased premise is in a flood plain and if so, whether that flood plain is a special flood hazard area or a moderate risk flood hazard area. There also must be information regarding whether the premises had experienced any flooding in the past. Finally, information on the availability of flood insurance must be provided in the lease.
NYSIF policies when there’s a balance
S.9096/A.10078–Sponsored by Sen. Jessica Ramos, D-13, and Assemblywoman Nathalia Fernandez, D-80. This bill would allow the New York State Insurance Fund to issue a policy where a balance is due on a prior policy issued by the NYSIF.
Those with a past amount due would be allowed to pay off the balance in installments. According to data provided in the bill justification, between the year 2020 and September 2021, almost 8,000 new business applications were immediately ineligible due to an owed balance on a prior policy.
If signed, this bill would go into effect immediately.
Bradford J. Lachut, Esq.
Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.