Relates to excess medical malpractice insurance and extending the effectiveness thereof.
TITLE OF BILL: An act to amend chapter 673 of the laws of 2005, amending the insurance law relating to excess medical malpractice insurance, in relation to the effectiveness of the provisions of such chapter
PURPOSE: This bill would extend until July 1, 2018 the elimination of the requirement that the Medical Malpractice Insurance Pool offer a second layer of excess medical malpractice insurance coverage.
SUMMARY OF PROVISIONS: This bill would extend from July 1, 2013 to July 1, 2018 the statutory clarification that the Medical Malpractice Insurance Pool (MMIP) is not required to offer a second layer of excess medical malpractice insurance coverage.
JUSTIFICATION: In 1999, legislation was passed to dissolve the Medical Malpractice Insurance Association ("MMIA"), the market of last resort for medical malpractice insurance (Chapter 407 of the laws of 1999). Upon MMIA's dissolution, the MMIP was established as a source of medical malpractice insurance for health care providers who were unable to procure such insurance in the voluntary market. Chapter 407 required that upon initial distribution, i.e., the July 1, 2000 through June 30, 2001 policy year, MMIA insureds were to-receive policies with provisions and at rates which were at least as favorable to the insureds as what they would have received upon renewal had MMIA not been dissolved, including a second layer of excess coverage.
Currently, no authorized medical malpractice insurer offers a second excess layer of coverage to its insured physicians, dentists or podiatrists. It is both unfair and illogical to require MMIP to bear the financial burden associated with providing a second layer of excess medical malpractice insurance to such health care providers where industry practice does not make such insurance available. Without this extension MMIP will be required to provide a second layer of excess medical malpractice insurance in the involuntary market despite the fact that no MMIP member insurer will provide in. the voluntary market such coverage to its own policyholders. This bill will continue to correct this inequity by clarifying that MMIP is not required to offer a second layer of excess medical malpractice insurance.
LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: None noted.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 5704 2013-2014 Regular Sessions IN SENATE June 6, 2013 ___________Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend chapter 673 of the laws of 2005, amending the insurance law relating to excess medical malpractice insurance, in relation to the effectiveness of the provisions of such chapter THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 2 of chapter 673 of the laws of 2005 amending the insurance law relating to excess medical malpractice insurance, as amended by chapter 132 of the laws of 2008, is amended to read as follows: S 2. This act shall take effect January 1, 2006 and shall expire and be deemed repealed July 1,
2018. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10835-01-3