Recently, there has been confusion surrounding supplemental spousal liability coverage in auto policies in New York state. It has gone from an opt-in option, to automatic coverage, and back again to an opt-in option—unless a spouse is indicated on the application. This amendment (A.9407-A/S.9021), which passed the Legislature last year is an attempt to eliminate the confusion around this coverage, especially when the insured was single.
What has changed
Policyholders will once again need to opt in to SSL coverage for it to be included in their auto policies. However, there is one key exception: if the first-named insured indicates on the insurance application that he or she has a spouse, SSL coverage will be included in the policy automatically. The first-named insured still retains the option to decline this coverage by providing written notice to the insurance carrier.
This legislative update simplifies the process, reduces confusion, and ensures that SSL coverage is clearly and appropriately offered to policyholders in New York state.
PIANY—acting on concerns from association members—pushed for this legislation. We want to thank all the PIANY members who took the time to voice their concerns about the 2023 changes, and who assisted the association in achieving another legislative success with these 2024 amendments.
For more information about SSL, see New York Department of Financial Services announces the inclusion of spousal liability coverage on personal and commercial automobile insurance policies and Supplemental spousal liability FAQs.
Shirley Albright, CPIA, CISR
Shirley Albright, CPIA, CISR, joined PIA in 1983 and has worked in many facets of the association over the years. In 1995, she was an integral part of establishing the Industry Resource Center to include the development of the software system to record and track all incoming and outgoing inquiries. She quickly moved from industry resource representative to assistant director and eventually to her current position as director. Currently, Shirley oversees the daily operations of the Industry Resource Center to include the triage of thousands of incoming member inquiries. Her other accomplishments include obtaining her New York state property/casualty broker’s license, CPIA and CISR designations.
