NY| The New York Insurance Circular Letter No. 2 (2025) provides updated guidance on supplemental spousal liability (SSL) insurance following amendments to Insurance Law § 3420(g) by Chapter 356 of the Laws of 2024, effective March 26, 2025.
Key Points:
- Automatic Inclusion and Opt-Out: Insurers must automatically include SSL insurance in non-commercial motor vehicle policies only if the first named insured indicates having a spouse on the application, with the option to decline in writing; for other policies, SSL is available only upon written request.
- Notification Requirements: Insurers are required to provide clear, boldface notifications at policy issuance and renewal regarding the inclusion or availability of SSL coverage and its premium, using specific language and forms as outlined by the Department of Financial Services.
- Premium and Declination Procedures: A premium must be charged for SSL insurance based on policy liability limits, and insurers must use a standardized declination form for insureds who opt out, with procedures for both written and electronic submission; premium reductions must be applied if SSL is declined.