2023 New York Laws › ISC - Insurance › Article 34 - Insurance Contracts-Property/casualty › 3420 - Liability Insurance; Standard Provisions; Right of Injured Person.

§  3420.  Liability  insurance;  standard provisions; right of injured
person. (a) No policy or contract insuring against liability for  injury
to  person,  except  as  provided  in subsection (g) of this section, or
against liability for injury to, or destruction of,  property  shall  be
issued  or  delivered in this state, unless it contains in substance the
following provisions or provisions that are equally or more favorable to
the insured and to judgment creditors so far as such  provisions  relate
to judgment creditors:
(1)  A  provision  that  the  insolvency  or  bankruptcy of the person
insured, or the insolvency of the insured's estate,  shall  not  release
the  insurer  from  the  payment of damages for injury sustained or loss
occasioned during the life of and within the coverage of such policy  or
contract.
(2)  A  provision  that  in  case  judgment against the insured or the
insured's personal  representative  in  an  action  brought  to  recover
damages  for  injury  sustained  or loss or damage occasioned during the
life  of  the  policy  or  contract  shall  remain  unsatisfied  at  the
expiration  of  thirty  days  from  the  serving  of  notice of entry of
judgment upon the attorney for the insured, or  upon  the  insured,  and
upon  the  insurer,  then an action may, except during a stay or limited
stay of execution against the insured on such  judgment,  be  maintained
against  the  insurer  under the terms of the policy or contract for the
amount of such judgment not exceeding the amount of the applicable limit
of coverage under such policy or contract.
(3) A provision that notice given by or on behalf of the  insured,  or
written  notice  by  or  on  behalf  of  the injured person or any other
claimant, to any licensed agent of  the  insurer  in  this  state,  with
particulars  sufficient  to identify the insured, shall be deemed notice
to the insurer.
(4) A provision that failure to give any notice required to  be  given
by  such  policy within the time prescribed therein shall not invalidate
any claim made by the insured, an injured person or any  other  claimant
if  it  shall be shown not to have been reasonably possible to give such
notice within the prescribed time and that notice was given as  soon  as
was reasonably possible thereafter.
(5)  A  provision that failure to give any notice required to be given
by such policy within the time prescribed therein shall  not  invalidate
any  claim  made  by  the insured, injured person or any other claimant,
unless the failure to provide timely notice has prejudiced the  insurer,
except as provided in paragraph four of this subsection. With respect to
a  claims-made  policy,  however,  the policy may provide that the claim
shall be made during the policy period,  any  renewal  thereof,  or  any
extended  reporting period, except as provided in paragraph four of this
subsection. As used in this paragraph, the  terms  "claims-made  policy"
and  "extended reporting period" shall have their respective meanings as
provided in a regulation promulgated by the superintendent.
(6) A provision that, with respect to a claim arising out of death  or
personal  injury  of  any  person, if the insurer disclaims liability or
denies coverage based upon the failure to provide  timely  notice,  then
the  injured  person  or  other claimant may maintain an action directly
against such insurer, in  which  the  sole  question  is  the  insurer's
disclaimer  or  denial  based  on  the failure to provide timely notice,
unless within sixty  days  following  such  disclaimer  or  denial,  the
insured or the insurer: (A) initiates an action to declare the rights of
the parties under the insurance policy; and (B) names the injured person
or other claimant as a party to the action.
(b)  Subject  to  the  limitations  and conditions of paragraph two of
subsection (a) of this section, an  action  may  be  maintained  by  the

following  persons  against  the  insurer upon any policy or contract of
liability insurance that is governed by such paragraph, to  recover  the
amount of a judgment against the insured or his personal representative:
(1)  any person who, or the personal representative of any person who,
has obtained a judgment against the insured or  the  insured's  personal
representative,  for  damages  for  injury  sustained  or loss or damage
occasioned during the life of the policy or contract;
(2) any person who, or the personal representative of any person  who,
has  obtained  a  judgment against the insured or the insured's personal
representative to enforce a right of contribution or indemnity,  or  any
person subrogated to the judgment creditor's rights under such judgment;
and
(3)  any assignee of a judgment obtained as specified in paragraph one
or paragraph two of this subsection, subject further to  the  limitation
contained in section 13-103 of the general obligations law.
(c)  (1)  If  an  action  is  maintained  against an insurer under the
provisions of paragraph two of subsection (a) of this  section  and  the
insurer  alleges  in  defense  that  the  insured  failed  or refused to
cooperate with the insurer in violation of any provision in  the  policy
or  contract  requiring  such cooperation, then the burden shall be upon
the insurer to prove such alleged failure or refusal to cooperate.
(2)(A) In  any  action  in  which  an  insurer  alleges  that  it  was
prejudiced as a result of a failure to provide timely notice, the burden
of  proof  shall  be  on:  (i)  the  insurer  to  prove that it has been
prejudiced, if the notice was provided within  two  years  of  the  time
required  under the policy; or (ii) the insured, injured person or other
claimant to prove that the insurer  has  not  been  prejudiced,  if  the
notice  was  provided  more than two years after the time required under
the policy.
(B)  Notwithstanding  subparagraph   (A)   of   this   paragraph,   an
irrebuttable  presumption  of prejudice shall apply if, prior to notice,
the insured's liability has been determined  by  a  court  of  competent
jurisdiction  or  by binding arbitration; or if the insured has resolved
the claim or suit by settlement or other compromise.
(C) The insurer's rights shall not be  deemed  prejudiced  unless  the
failure  to  timely provide notice materially impairs the ability of the
insurer to investigate or defend the claim.
(d)(1)(A) This paragraph applies with respect to  a  liability  policy
that  provides coverage with respect to a claim arising out of the death
or bodily injury of any person, where the  policy  is:  (i)  subject  to
section  three  thousand four hundred twenty-five of this article, other
than an excess liability or umbrella policy; or (ii) used to  satisfy  a
financial responsibility requirement imposed by law or regulation.
(B)  Upon  an  insurer's  receipt  of  a written request by an injured
person who has filed a claim or by another claimant, an  insurer  shall,
within  sixty days of receipt of the written request: (i) confirm to the
injured person or other claimant in writing whether the  insured  had  a
liability  insurance policy of the type specified in subparagraph (A) of
this paragraph in effect with the insurer on the  date  of  the  alleged
occurrence;  and  (ii)  specify  the  liability  insurance limits of the
coverage provided under the policy.
(C)  If  the  injured  person  or  other  claimant  fails  to  provide
sufficient identifying information to allow the insurer, in the exercise
of  reasonable  diligence, to identify a liability insurance policy that
may be relevant to the claim, the insurer shall within  forty-five  days
of receipt of the written request, so advise the injured person or other
claimant  in  writing  and  identify  for  the  injured  person or other
claimant the additional information needed. Within  forty-five  days  of

receipt  of  the  additional  information, the insurer shall provide the
information required under subparagraph (B) of this paragraph.
(2)  If under a liability policy issued or delivered in this state, an
insurer shall disclaim liability or deny coverage for  death  or  bodily
injury  arising  out  of  a  motor vehicle accident or any other type of
accident occurring within this state, it shall give  written  notice  as
soon as is reasonably possible of such disclaimer of liability or denial
of coverage to the insured and the injured person or any other claimant.
(e) No policy or contract of personal injury liability insurance or of
property damage liability insurance, covering liability arising from the
ownership,  maintenance  or  operation  of  any  motor vehicle or of any
vehicle as defined in section three hundred eighty-eight of the  vehicle
and  traffic  law,  or  an aircraft, or any vessel as defined in section
forty-eight of the navigation law, shall be issued or delivered in  this
state  to  the  owner  thereof,  or  shall be issued or delivered by any
authorized insurer upon any such vehicle  or  aircraft  or  vessel  then
principally  garaged  or  principally  used  in  this  state,  unless it
contains a provision insuring the named insured  against  liability  for
death  or  injury  sustained,  or  loss  or damage occasioned within the
coverage of the policy or contract, as a result  of  negligence  in  the
operation  or  use  of such vehicle, aircraft or vessel, as the case may
be, by any person operating or  using  the  same  with  the  permission,
express or implied, of the named insured.
(f)  (1)  No  policy  insuring  against  loss resulting from liability
imposed by law for bodily injury or death suffered by any natural person
arising out of the ownership, maintenance and use of a motor vehicle  or
an  altered  motor vehicle commonly referred to as a "stretch limousine"
having a seating capacity of  eight  or  more  passengers  used  in  the
business of carrying or transporting passengers for hire, by the insured
shall  be  issued  or delivered by any authorized insurer upon any motor
vehicle or an altered motor vehicle commonly referred to as  a  "stretch
limousine" having a seating capacity of eight or more passengers used in
the  business  of  carrying  or  transporting  passengers for hire, then
principally garaged or principally used in this state unless it contains
a provision whereby the insurer agrees that it will pay to the  insured,
as  defined  in  such provision, subject to the terms and conditions set
forth therein to be prescribed by the board of directors  of  the  Motor
Vehicle   Accident  Indemnification  Corporation  and  approved  by  the
superintendent, all sums, not exceeding a maximum  amount  or  limit  of
twenty-five thousand dollars exclusive of interest and costs, on account
of  injury  to  and all sums, not exceeding a maximum amount or limit of
fifty thousand dollars exclusive of interest and costs,  on  account  of
death  of  one  person,  in  any one accident, and the maximum amount or
limit, subject to such limit for any one  person  so  injured  of  fifty
thousand dollars or so killed of one hundred thousand dollars, exclusive
of  interest  and costs, on account of injury to, or death of, more than
one person  in  any  one  accident,  which  the  insured  or  his  legal
representative  shall be entitled to recover as damages from an owner or
operator of an uninsured motor vehicle, unidentified motor vehicle which
leaves the scene of an accident, a  motor  vehicle  registered  in  this
state  as to which at the time of the accident there was not in effect a
policy of  liability  insurance,  a  stolen  vehicle,  a  motor  vehicle
operated without permission of the owner, an insured motor vehicle where
the  insurer  disclaims  liability or denies coverage or an unregistered
vehicle because of bodily injury, sickness or disease,  including  death
resulting  therefrom,  sustained  by  the  insured,  caused  by accident
occurring in this state and arising out of the ownership, maintenance or
use of such motor vehicle. No payment for  non-economic  loss  shall  be

made  under such policy provision to a covered person unless such person
has incurred a serious injury, as such terms are defined in section five
thousand one  hundred  two  of  this  chapter.  Such  policy  shall  not
duplicate  any element of basic economic loss provided for under article
fifty-one of this chapter. No payments of first party benefits for basic
economic  loss  made  pursuant  to  such  article  shall  diminish   the
obligations  of  the insurer under this policy provision for the payment
of non-economic loss and economic loss in excess of basic economic loss.
Notwithstanding any inconsistent provisions of  section  three  thousand
four hundred twenty-five of this article, any such policy which does not
contain   the  aforesaid  provisions  shall  be  construed  as  if  such
provisions were embodied therein.
(2) (A) Any such policy shall, at the  option  of  the  insured,  also
provide  supplementary  uninsured/underinsured  motorists  insurance for
bodily injury, in an amount up to the bodily injury liability  insurance
limits  of  coverage provided under such policy, subject to a maximum of
two hundred fifty thousand dollars because of bodily injury to or  death
of  one  person  in  any one accident and, subject to such limit for one
person, up to five hundred thousand dollars because of bodily injury  to
or  death  of  two  or  more  persons in any one accident, or a combined
single limit policy of five hundred thousand dollars because  of  bodily
injury  to  or death of one or more persons in any one accident; and any
such policy insuring against loss resulting from  liability  imposed  by
law  for  bodily  injury or death suffered by any natural person arising
out of the ownership, maintenance, and use of an altered  motor  vehicle
commonly  referred to as a "stretch limousine" having a seating capacity
of eight or  more  passengers  used  in  the  business  of  carrying  or
transporting   passengers   for   hire,   shall   provide  supplementary
uninsured/underinsured motorists insurance  for  bodily  injury,  in  an
amount  of  a combined single limit of one million five hundred thousand
dollars because of bodily injury or death of one or more persons in  any
one  accident.  Provided  however,  an  insurer issuing any such policy,
except a policy insuring against loss resulting from  liability  imposed
by law for bodily injury or death suffered by any natural person arising
out  of  the ownership, maintenance, and use of an altered motor vehicle
commonly referred to as a "stretch limousine" having a seating  capacity
of  eight  or  more  passengers  used  in  the  business  of carrying or
transporting passengers for hire, in lieu of offering to the insured the
coverages stated above, may provide supplementary uninsured/underinsured
motorists insurance for bodily injury, in an amount  up  to  the  bodily
injury  liability  insurance  limits  of  coverage  provided  under such
policy, subject to a maximum of one hundred thousand dollars because  of
bodily injury to or death of one person in any one accident and, subject
to  such  limit  for  one  person,  up to three hundred thousand dollars
because of bodily injury to or death of two or more persons in  any  one
accident,  or  a  combined single limit policy of three hundred thousand
dollars because of bodily injury to or death of one or more  persons  in
any  one  accident,  if  such  insurer  also  makes available a personal
umbrella policy with liability coverage  limits  up  to  at  least  five
hundred  thousand dollars which also provides coverage for supplementary
uninsured/underinsured       motorists       claims.       Supplementary
uninsured/underinsured  motorists  insurance  shall provide coverage, in
any state or Canadian province, if the limits  of  liability  under  all
bodily  injury  liability  bonds and insurance policies of another motor
vehicle liable for damages are in a lesser amount than the bodily injury
liability insurance limits of coverage provided  by  such  policy.  Upon
written    request    by    any    insured   covered   by   supplemental
uninsured/underinsured  motorists  insurance  or  his  duly   authorized

representative  and  upon  disclosure  by  the  insured of the insured's
bodily  injury   and   supplemental   uninsured/underinsured   motorists
insurance coverage limits, the insurer of any other owner or operator of
another motor vehicle against which a claim has been made for damages to
the  insured  shall disclose, within forty-five days of the request, the
bodily injury liability insurance limits of its coverage provided  under
the policy or all bodily injury liability bonds. The time of the insured
to  make  any supplementary uninsured/underinsured motorist claim, shall
be tolled during the period the insurer of any other owner  or  operator
of  another motor vehicle that may be liable for damages to the insured,
fails to so disclose its coverage.  As  a  condition  precedent  to  the
obligation   of   the   insurer   to   pay   under   the   supplementary
uninsured/underinsured  motorists  insurance  coverage,  the  limits  of
liability  of  all  bodily  injury liability bonds or insurance policies
applicable at the time of the accident shall be exhausted by payment  of
judgments  or  settlements.  As used in this subsection, "motor vehicle"
shall include fire vehicles, as defined in section one hundred fifteen-a
of the vehicle and traffic law,  and  police  vehicles,  as  defined  in
section one hundred thirty-two-a of the vehicle and traffic law.
(B)  In  addition to the notice provided, upon issuance of a policy of
motor vehicle liability insurance pursuant to regulations promulgated by
the superintendent, insurers shall notify insureds, in writing,  of  the
availability of supplementary uninsured/underinsured motorists coverage.
Such   notification   shall  contain  an  explanation  of  supplementary
uninsured/underinsured motorists coverage and the amounts  in  which  it
can  be purchased. Subsequently, a notification of availability shall be
provided at least  once  a  year  and  may  be  simplified  pursuant  to
regulations  promulgated  by  the  superintendent,  but  must  include a
concise statement that  supplementary  uninsured/underinsured  motorists
coverage is available, an explanation of such coverage, and the coverage
limits that can be purchased from the insurer.
* (2-a)  (A)  Notwithstanding  paragraph  two of this subsection, this
paragraph shall apply to any new insurance policy or contract subject to
this subsection entered into after the effective date of this paragraph.
This paragraph shall not be deemed to apply to any  policies  originally
entered  into prior to the effective date of this paragraph, but renewed
after the effective  date  of  this  paragraph,  or  to  any  policy  of
commercial  risk insurance. Any new insurance policy or contract entered
into after the effective date of this paragraph shall, at the option  of
the     first     named     insured,    also    provide    supplementary
uninsured/underinsured motorists insurance  for  bodily  injury,  in  an
amount equal to the bodily injury liability insurance limits of coverage
provided  under such motor vehicle liability insurance policy; provided,
however, that a first named insured may exercise the choice  to  decline
such  supplementary uninsured/underinsured motorists insurance or select
a  lower  amount  of  coverage  through  a  written  waiver  signed,  or
electronically  signed,  by such insured, subject to the requirements of
subparagraph (B) of this paragraph. Supplementary uninsured/underinsured
motorists insurance shall provide coverage, in  any  state  or  Canadian
province,  if  the limits of liability under all bodily injury liability
bonds and insurance policies of  any  other  motor  vehicle  liable  for
damages  are  in  a  lesser  amount  than  the  bodily  injury liability
insurance limits of coverage  provided  by  such  policy.  Upon  written
request  by  any  insured covered by supplemental uninsured/underinsured
motorists  insurance  or  a  duly  authorized  representative  and  upon
disclosure   by   the   insured  of  the  insured's  bodily  injury  and
supplemental uninsured/underinsured motorists insurance coverage limits,
the insurer of any other owner or  operator  of  another  motor  vehicle

against  which  a  claim  has been made for damages to the insured shall
disclose, within forty-five days  of  the  request,  the  bodily  injury
liability  insurance limits of its coverage provided under the policy or
all  bodily  injury liability bonds. The time of the insured to make any
supplementary uninsured/underinsured motorist  claim,  shall  be  tolled
during  the period the insurer of any other owner or operator of another
motor vehicle that may be liable for damages to the insured, fails to so
disclose its coverage. As a condition precedent to the obligation of the
insurer to pay under the supplementary uninsured/underinsured  motorists
insurance  coverage,  the  limits  of  liability  of  all  bodily injury
liability bonds or insurance policies applicable  at  the  time  of  the
accident shall be exhausted by payment of judgments or settlements.
(B)  In  addition to the notice provided, upon issuance of a policy of
motor vehicle liability insurance pursuant to regulations promulgated by
the superintendent, insurers shall notify insureds, in writing,  of  the
availability of supplementary uninsured/underinsured motorists coverage.
Such   notification   shall  contain  an  explanation  of  supplementary
uninsured/underinsured motorists coverage and the amounts  in  which  it
can  be purchased. Subsequently, a notification of availability shall be
provided at least  once  a  year  and  may  be  simplified  pursuant  to
regulations  promulgated  by  the  superintendent,  but  must  include a
concise statement that  supplementary  uninsured/underinsured  motorists
coverage is available, an explanation of such coverage, and the coverage
limits  that  can be purchased from the insurer. If an insured elects to
reject supplementary uninsured/underinsured motorist coverage or  select
a lower amount of supplementary uninsured/underinsured motorist coverage
than  the  bodily injury liability insurance limits of coverage provided
under the  insured's  motor  vehicle  liability  insurance  policy,  the
selection   of   lower  supplementary  uninsured/underinsured  motorists
coverage or rejection of such coverage must be  made  on  a  written  or
electronic  form  provided  to  the first named insured. Such form shall
also advise that such coverage is equal to the insured's  bodily  injury
liability  limits  under  the  motor  vehicle liability insurance policy
unless lower limits are requested or the coverage is rejected.
(i)    The    form    shall    also    advise    that    supplementary
uninsured/underinsured   motorists   coverage  (sum  coverage)  provides
insurance protection for any  person  included  as  insured  under  your
policy  if  he  or she is injured in an accident involving another motor
vehicle whose owner or operator was negligent  but  who  has  either  no
bodily  injury  or  liability  insurance, or less than the insurance you
carry. Sum coverage shall be equal to the level  of  the  bodily  injury
liability  coverage  of  your  motor  vehicle liability insurance policy
unless you sign a waiver requesting  lower  coverage  or  declining  the
coverage. You are urged to carefully consider this decision.
(ii)  An  insured's  written  waiver  shall  apply  to  all subsequent
renewals of coverage and to all policies or endorsements  which  extend,
change,  supersede,  or  replace  an existing policy issued to the named
insured, unless changed in writing by any named insured.
(iii) The  selection  of  lower  supplementary  uninsured/underinsured
motorists  coverage or the rejection of such coverage by any first named
insured shall be binding upon all insureds under such policy.
(C)  Notwithstanding  the  provisions  of  subparagraph  (A)  of  this
paragraph,   at   the  insurer's  option,  the  insured's  supplementary
uninsured/underinsured motorists coverage limit may be required to equal
the insured's bodily injury liability insurance limit  under  the  motor
vehicle liability insurance policy.
(D)  An  insurer  may provide the coverage described in this paragraph
available in an umbrella or excess liability policy if the  umbrella  or
excess liability policy expressly provides such coverage.
* NB Repealed June 30, 2026
(3)  The protection provided by this subsection shall not apply to any
cause of action by an insured person arising  out  of  a  motor  vehicle
accident  occurring  in  this  state  against a person whose identity is
unascertainable, unless the bodily injury to the  insured  person  arose
out of physical contact of the motor vehicle causing the injury with the
insured  person  or  with  a  motor vehicle which the insured person was
occupying (meaning in or upon or entering into or alighting from) at the
time of the accident.
(4) An insurer shall give notice to the commissioner of motor vehicles
of the entry of any judgment upon which a claim  is  made  against  such
insurer  under  this  subsection and of the payment or settlement of any
claim by the insurer.
(5) This paragraph shall apply to a policy that provides supplementary
uninsured/underinsured motorist insurance coverage for bodily injury and
is a policy: (A) issued or delivered in this state that insures  against
liability  arising  out of the ownership, maintenance, and use of a fire
vehicle, as defined in section one hundred fifteen-a of the vehicle  and
traffic  law,  where  the fire vehicle is principally garaged or used in
this state, or a police vehicle,  as  defined  in  section  one  hundred
thirty-two-a of the vehicle and traffic law, where the police vehicle is
principally  garaged  or  used  in  this  state;  or (B) as specified in
paragraph one of this subsection. Every such policy that insures a  fire
department,  fire  company,  as  defined  in  section one hundred of the
general municipal law,  an  ambulance  service,  a  voluntary  ambulance
service,  as  defined in section three thousand one of the public health
law, or a police agency, as defined in section eight hundred thirty-five
of   the   executive   law,    shall    provide    such    supplementary
uninsured/underinsured  motorist  insurance  coverage  to  an individual
employed by or who is a member of the  fire  department,  fire  company,
ambulance service, voluntary ambulance service, or police agency and who
is injured by an uninsured or underinsured motor vehicle while acting in
the  scope  of  the  individual's  duties  for the fire department, fire
company, ambulance  service,  voluntary  ambulance  service,  or  police
agency  covered  under  the  policy,  except  with respect to the use or
operation by such an individual of a motor vehicle not covered under the
policy.
* (g) (1) Except as  otherwise  provided  in  paragraph  two  of  this
subsection,  no policy or contract shall be deemed to insure against any
liability of an insured because of death of or injuries to  his  or  her
spouse or because of injury to, or destruction of property of his or her
spouse   unless  express  provision  relating  specifically  thereto  is
included in the policy.  This  exclusion  shall  apply  only  where  the
injured  spouse,  to  be  entitled  to  recover, must prove the culpable
conduct of the insured spouse.
(2) (A) Every insurer issuing or delivering any policy that  satisfies
the  requirements  of  article  six of the vehicle and traffic law shall
provide coverage in such policy against liability of an insured  because
of  death  of  or  injuries  to  his  or  her spouse up to the liability
insurance limits provided under  such  policy  even  where  the  injured
spouse,  to  be  entitled to recover, must prove the culpable conduct of
the insured spouse, unless the insured elects, in writing  and  in  such
form  as  the  superintendent  determines,  to  decline  and refuse such
coverage in his or her policy. Such insurance coverage shall be known as
"supplemental spousal liability insurance".
(B) Upon issuance, renewal or amendment of a motor  vehicle  liability
policy that satisfies the requirements of article six of the vehicle and
traffic law, the insurer shall notify the insured, in writing, that such
policy shall include supplemental spousal liability insurance unless the
insured declines and refuses such insurance, in writing and in such form
as shall be determined by the superintendent. Such notification shall be
contained  on  the  front  of  the  premium  notice in boldface type and
include a concise  statement  that  supplementary  spousal  coverage  is
provided  unless  declined  by  the  insured,  an  explanation  of  such
coverage, and the insurer's premium for such coverage.
* NB Effective until July 31, 2027
* (g) No policy or contract shall be  deemed  to  insure  against  any
liability  of  an  insured because of death of or injuries to his or her
spouse or because of injury to, or destruction of property of his or her
spouse  unless  express  provision  relating  specifically  thereto   is
included  in  the  policy  as provided in paragraphs one and two of this
subsection. This exclusion shall apply only where the injured spouse, to
be entitled to recover, must prove the culpable conduct of  the  insured
spouse.
(1)  Upon  written  request  of  an  insured,  and  upon  payment of a
reasonable premium established in accordance with  article  twenty-three
of  this  chapter,  an  insurer  issuing  or  delivering any policy that
satisfies the requirements of article six of the vehicle and traffic law
shall provide coverage against liability of an insured because of  death
of or injuries to his or her spouse up to the liability insurance limits
provided under such policy even where the injured spouse, to be entitled
to  recover, must prove the culpable conduct of the insured spouse. Such
insurance coverage shall be known  as  "supplemental  spousal  liability
insurance".
(2)  Upon  issuance of a motor vehicle liability policy that satisfies
the requirements of article six of the vehicle and traffic law and  that
becomes  effective  on  or  after  January  first,  two  thousand three,
pursuant to regulations promulgated by the superintendent,  the  insurer
shall   notify   the   insured,  in  writing,  of  the  availability  of
supplemental spousal liability insurance.  Such  notification  shall  be
contained  on  the  front  of  the  premium  notice in boldface type and
include a concise  statement  that  supplementary  spousal  coverage  is
available,  an  explanation  of such coverage, and the insurer's premium
for such coverage. Subsequently, a notification of the  availability  of
supplementary spousal liability coverage shall be provided at least once
a  year  in  motor vehicle liability policies issued pursuant to article
six of the vehicle and traffic law, including  those  originally  issued
prior  to  January first, two thousand three. Such notice must include a
concise statement that supplementary spousal coverage is  available,  an
explanation  of  such  coverage,  and  the  insurer's  premium  for such
coverage.
* NB Effective July 31, 2027
(h) In this section, the term "insurance upon  any  property  or  risk
located  in  this  state"  includes  insurance  against  legal liability
arising out of the ownership, operation or maintenance  of  any  vehicle
which  is  principally  garaged  or  principally  used in this state, or
arising out of the ownership,  operation,  use  or  maintenance  of  any
property which is principally kept or principally used in this state, or
arising  out  of  any  other activity which is principally carried on in
this state.
(i) Except  as  provided  in  subsection  (j)  of  this  section,  the
provisions  of this section shall not apply to any policy or contract of
insurance in so far as it  covers  the  liability  of  an  employer  for

workers' compensation, if such contract is governed by the provisions of
section  fifty-four  of the workers' compensation law, or by any similar
law of  another  state,  province  or  country,  nor  to  the  kinds  of
insurances set forth in paragraph three of subsection (b) of section two
thousand one hundred seventeen of this chapter.
(j)  (1)  Notwithstanding  any  other provision of this chapter or any
other law to the contrary, every policy providing comprehensive personal
liability insurance on a one, two, three or four  family  owner-occupied
dwelling,  issued  or  delivered in this state on and after the first of
March,  nineteen  eighty-four,  shall  provide  for   coverage   against
liability  for the payment of any obligation, which the policyholder may
incur pursuant to the provisions of the workers' compensation law, to an
employee arising out of and in the course of  employment  of  less  than
forty  hours  per week, in and about such residences of the policyholder
in this state. Such coverage shall  provide  for  the  benefits  in  the
standard  workers'  compensation policy issued in this state. No one who
purchases a policy providing comprehensive personal liability  insurance
shall be deemed to have elected to cover under the workers' compensation
law  any employee who is not required, under the provisions of such law,
to be covered.
(2) The term "policyholder"  as  used  in  this  subsection  shall  be
limited  to  an individual or individuals as defined by the terms of the
policy, but shall not include corporate or other business entities or an
individual who  has  or  individuals  who  have  in  effect  a  workers'
compensation  policy  which covers employees working in and about his or
their residence.
(3) Every insurer who is  licensed  by  the  superintendent  to  issue
homeowners  or other policies providing comprehensive personal liability
insurance in this state shall also be deemed to be licensed to  transact
workers'  compensation  insurance  for  the  purpose  of  covering those
persons specified in this subsection.