N.Y. Insurance Law § 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, 2029

(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 the insured's

spouse or because of injury to, or destruction of property of the

insured's 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) (i) Upon issuance of a motor vehicle liability policy and

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 and is subject to section three thousand four hundred

twenty-five of this article shall provide coverage in such a policy

issued to a first named insured who has indicated that such insured has

a spouse on the insurance application, against liability of an insured

because of death of or injuries to the insured's 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 a first named insured elects, in

writing and in such form as the superintendent determines, to decline

and refuse such coverage in the first named insured's policy. Such

insurance coverage shall be known as "supplemental spousal liability

insurance".

(ii) 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, other than as specified in item (i) of this subparagraph, shall

provide coverage in such a policy against liability of an insured

because of death of or injuries to the insured's 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.

(B) (i) Upon issuance of a motor vehicle liability policy that

satisfies the requirements of article six of the vehicle and traffic law

and is subject to section three thousand four hundred twenty-five of

this article, the insurer shall notify a first named insured who has

indicated that such insured has a spouse on the insurance application,

in writing, that such policy shall include supplemental spousal

liability insurance unless a first named 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

supplemental spousal liability coverage is provided unless declined by a

first named insured, an explanation of such coverage, and the insurer's

premium for such coverage.

(ii) Upon renewal or amendment of a motor vehicle liability policy

that satisfies the requirements of article six of the vehicle and

traffic law and has supplemental spousal liability coverage under the

policy, the insurer shall provide a notification to a first named

insured that includes a concise statement that such policy includes

supplemental spousal liability coverage unless declined by a first named

insured in writing and in such form as shall be determined by the

superintendent, an explanation of such coverage, and the insurer's

premium for such coverage. Such notification shall be contained on the

front of the premium notice in boldface type.

(iii) A written declination shall apply to subsequent policy renewals

unless a first named insured requests supplemental spousal liability

insurance.

(C) A notification of the availability of supplemental spousal

liability insurance shall be provided upon policy issuance, other than

for the policies to which the notification requirement in item (i) of

subparagraph (B) of this paragraph applies, and at least once a year for

all motor vehicle liability policies that satisfy the requirements of

article six of the vehicle and traffic law, where the policy does not

already provide supplemental spousal liability insurance. Such notice

shall be contained on the front of the premium notice in boldface type

and include a concise statement that supplemental spousal liability

coverage is available, 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.