Bill Text: NY S00422 | 2017-2018 | General Assembly | Introduced

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Bill Title: Relates to medical malpractice excess line insurance.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO INSURANCE [S00422 Detail]

Download: New_York-2017-S00422-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                           422
                               2017-2018 Regular Sessions
                    IN SENATE
                                       (Prefiled)
                                     January 4, 2017
                                       ___________
        Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
          printed to be committed to the Committee on Insurance
        AN ACT to amend the insurance law, in relation to excess  line  coverage
          for certain medical malpractice insurance
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subsection (e) of section 2118 of  the  insurance  law,  as
     2  added  by chapter 684 of the laws of 1993, subparagraph (A) of paragraph
     3  2 as amended by chapter 587 of the laws of  2002,  subparagraph  (C)  of
     4  paragraph 2 as amended by chapter 498 of the laws of 1996, is amended to
     5  read as follows:
     6    (e)(1)  Except  as  provided  in  paragraph two of this subsection, no
     7  licensee shall be required to obtain a declination from  an  association
     8  established  pursuant  to article fifty-four or fifty-five of this chap-
     9  ter, or to apply for insurance through a plan  established  pursuant  to
    10  article  fifty-three of this chapter, as a condition of procuring insur-
    11  ance pursuant to this section.
    12    (2) (A) Unless the licensee obtains a declination from the appropriate
    13  association, or from an insurer pursuant to an application for  coverage
    14  through a plan, no diligent effort shall be considered to have been made
    15  if the insurance is available from the plan or association in connection
    16  with the placement of:
    17    (i) a policy of non-commercial motor vehicle liability insurance; or
    18    (ii) [medical malpractice insurance for a general hospital, as defined
    19  in  subdivision  ten  of  section  two thousand eight hundred one of the
    20  public health law, a physician or dentist; or
    21    (iii)] insurance which by law must be provided by an authorized insur-
    22  er.
    23    (B) In connection with the placement of any other kind of insurance, a
    24  declination from the appropriate association, or from an insurer  pursu-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01681-01-7
        S. 422                              2
     1  ant  to  an  application  for coverage through a plan, shall be required
     2  unless prior to the placement the insured has been advised of the avail-
     3  ability of insurance from the plan or association.
     4    (C)  The  affirming broker shall provide written notice to the insured
     5  that the placement was made with an unauthorized insurer. A copy of this
     6  notice shall be attached to the affirming broker's affidavit. The  affi-
     7  davits  required by this section to be completed by the affirming broker
     8  shall include a statement that the affirming broker advised the  insured
     9  in writing:
    10    (i)  that  the  unauthorized  insurer with which the coverage is being
    11  placed is not authorized to do an insurance business in this  state  and
    12  is not subject to supervision by this state;
    13    (ii)  that in the event of the insolvency of the unauthorized insurer,
    14  losses will not be covered by any New York state insolvency fund;
    15    (iii) that the policy may not be subject to all of the regulations  of
    16  the superintendent pertaining to policy forms; and
    17    (iv)  such other information as the superintendent may, by regulation,
    18  require.
    19    § 2. This act shall take effect immediately.