Legal requirements related to offering supplemental spousal liability coverage may get a little less confusing in New York state. A bill (A.9407), which would make important changes to the supplemental spousal liability coverage in auto policies, passed the state Assembly last week.
The bill would undo changes made to SSL in 2023: it required most policyholders to opt-out of the SSL coverage. This created a lot of confusion among policyholders, especially those who do not have spouses.
Under A.9407, policyholders would have to opt-in to SSL coverage for it to appear in their policy, just as it was required before 2023. A.9407 does create one notable exception to the opt-in requirement. In situations in which the first-named insured has indicated he or she has a spouse on the insurance application, SSL coverage will be included on the policy automatically. The first-named insured can decline the coverage if he or she gives notice to the carrier of that decision in writing.
This bill now will be considered by the state Senate, where same-as legislation (S.9021) already has been reported out of the Senate Insurance Committee.
More information about SSL can be found here.
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.
