APCIA Comments on New York Law Automatically Adding Supplemental Spousal Liability Insurance to All Motor Vehicle Policies

CHICAGO, Illinois, Aug. 26 -- The American Property Casualty Insurance Association issued the following statement on Aug. 25, 2023:

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The following statement regarding New York A.1029/S.9367 of 2022, which was enacted and amends New York's Insurance Law regarding the provision of supplemental spousal liability insurance to persons who are insured for loss resulting from the ownership, maintenance and use of a motor vehicle's can be attributed to Kristina Baldwin, vice president, American Property Casualty Insurance Association.

"This legislation amends New York's Insurance Law in relation to the provision of supplemental spousal liability insurance to persons who are insured for loss resulting from the ownership, maintenance, and use of a motor vehicle.

"Under the previous law, insurers were required to offer supplementary spousal liability insurance to policyholders or potential policyholders. In this way consumers were able to consider their own circumstances and determine whether they wish to purchase this coverage. This new law mandates that the coverage be included with a corresponding additional premium unless the insured specifically declines such coverage in writing.

"There is no reason that an insured should have to specifically decline this coverage in a separate written document. Rather, the choice as to what insurance to purchase to protect the insured, should remain in the control of the insured. It is also concerning that the provisions of this law also apply to New York residents who are not married and businesses, neither of which have spouses. This will mean that millions of New Yorkers who would not benefit from the coverage will have to take steps to provide a written declination of the coverage or otherwise be charged the premium for such coverage which is of no use to them."

The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions--protecting families, communities, and businesses in the U.S. and across the globe.

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Original text here: https://www.apci.org/media/news-releases/release/77255/