Statute Which Excludes Coverage for a Suit by an Injured Spouse (Passenger) Against Her Husband (Driver) Does Not Exclude Coverage for a Cross-Claim Against Husband (Driver) by the Defendant-Driver Sued by the Injured Spouse (Passenger)

Although the Insurance Law (section 3420 (g)) excludes coverage for an action by injured wife (passenger) against her husband (driver), it does not exclude coverage for a cross-claim against the husband (driver) by the defendant-driver sued by the injured wife (passenger):

Pursuant to Insurance Law § 3420(g), “[i]n the absence of an express provision in an insured’s policy, a carrier is not required to provide insurance coverage for injuries sustained by an insured’s spouse” … . Insurance Law § 3420(g) “was enacted to prevent the possible fraud and collusion that might arise in actions wherein an injured spouse seeks to recover for injuries resulting from the negligence of an insured spouse” … . The chance of fraud and collusion, however, “is slight where a passenger-spouse is suing a third-party who brings a claim for relative contribution against a driver-spouse [as] [t]he recovery of the injured spouse is not dependent upon proving the liability of the driver-spouse” … . Thus, Insurance Law § 3420(g) does not “preclude liability insurance coverage on a third-party claim for contribution against an insured (joint tortfeasor) spouse of an injured [person]” … . Metropolitan Group Prop. v Kim, 2015 NY Slip Op 03138, 2nd Dept 4-15-15