NYAIP Issues Plan Manual Amendments on Spousal Liability Coverage

May 28, 2003

The Plan Manual of the New York Auto Insurance Plan has recently been updated to conform with Insurance Department regulations, adopted last November, which require insurers upon the written request of an insured, and upon payment of the premium, to issue and deliver a policy providing for “Supplemental Spousal Liability” (SSL) Insurance coverage,” to all commercial Auto Policy holders.

“The revised amendments to Regulation 35-A specify that insurers provide notification about the availability of SSL coverage for all commercial policies issued or renewed that become effective on and after January 1, 2003. Therefore, the Insurance Department is not requiring insurers to offer commercial SSL coverage midterm before any renewal taking place in 2003,” said the bulletin.

“Insurers may use the sample notification provided in revised Regulation 35-A or its substantive equivalent. It is not necessary to include the dollar amount of SSL coverage for the first year notification and insurers can state that SSL coverage is 5% of the total bodily injury premium for the first year. However, on policies issued or renewed after that, subscribers should program their systems so that the dollar amount of SSL coverage appears in the notification,” it continued.

“The amendments require assigned insurers to offer SSL coverage to all risks written under a Commercial Auto Policy with the exception of all-terrain vehicles and snowmobiles,” it noted. “Excess liability policies are not eligible to receive SSL coverage. This coverage is included within the policy’s bodily injury limits, does not increase the amount of those limits and will be available for combined single limits policies.”

The announcement indicated that “Endorsement forms were approved to add or exclude SSL coverage from the commercial auto policy. These endorsements will be announced in a separate circular to all holders of the Automobile Insurance Plan Countrywide Commercial Policy and Endorsement Portfolio. In addition, commercial applications and policy change request forms were revised to include SSL coverage and are available in the Forms Library For Producers after logging into www.nypass.com. ”

It added that “Frequently asked questions and answers are available on our website under “What’s New” at www.aipso.com/ny/.

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