Bill Text: NY S04412 | 2009-2010 | General Assembly | Introduced
Bill Title: Relates to standards for claims-made coverage purchased by psychiatrists; provides that insurers may offer insureds extended reporting periods.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-01-06 - REFERRED TO INSURANCE [S04412 Detail]
Download: New_York-2009-S04412-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
4412
2009-2010 Regular Sessions
I N S E N A T E
April 23, 2009
___________
Introduced by Sen. O. JOHNSON -- 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 standards for claims-
made coverage purchased by psychiatrists
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subsections (a) and (b) of section 3436 of the insurance
2 law, subsection (a) and the opening paragraph of subsection (b) as
3 amended by chapter 381 of the laws of 1991 and subsection (b) as added
4 by chapter 266 of the laws of 1986, are amended to read as follows:
5 (a) Every insurer which issues or renews policies for primary levels
6 of medical malpractice insurance covering physicians licensed to prac-
7 tice in this state shall issue such policies on a claims-made or occur-
8 rence basis, as prescribed by the superintendent by regulation SUBJECT
9 TO THE LIMITATIONS SPECIFIED IN THIS SUBSECTION AND SUBSECTION (B) OF
10 THIS SECTION; provided, further, that nothing in this section shall
11 preclude any insurer from applying otherwise applicable underwriting
12 standards in determining whether to issue or renew such policies.
13 (b) A claims-made policy shall contain the following provisions:
14 (1) if the insured has purchased a claims-made policy from an admitted
15 insurer for a period of five or more consecutive years and the insured,
16 after attaining the age of sixty-five or older, retires permanently and
17 totally from the practice of medicine or if the insured has purchased
18 such a policy for a period of ten or more consecutive years, and the
19 insured, after attaining the age of fifty-five or older, retires perma-
20 nently and totally from the practice of medicine, the insurer shall,
21 without charging an additional premium therefor at the time of, or
22 subsequent to, such retirement, also cover all occurrences between the
23 inception date of the first such consecutive policy from such insurer
24 and such retirement date which, subsequent to the termination date, are
25 reported in accordance with statutory and policy requirements; PROVIDED,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02798-01-9
S. 4412 2
1 HOWEVER, THAT NO REGULATION OF THE SUPERINTENDENT, NOR ANY PROVISION OF
2 THIS SECTION NOTWITHSTANDING, SHALL PRECLUDE AN INSURER, WHO ISSUES
3 POLICIES TO PHYSICIANS PRACTICING PSYCHIATRY, FROM OFFERING SUCH
4 INSUREDS AN EXTENDED REPORTING PERIOD THAT PROVIDES FOR A NONRENEWABLE
5 AGGREGATE LIABILITY LIMIT EQUAL TO AT LEAST ONE HUNDRED PERCENT OF THE
6 POLICY'S ANNUAL AGGREGATE LIABILITY LIMIT;
7 (2) if the insured dies or becomes permanently disabled and unable to
8 practice medicine while covered by such a policy, the insurer shall,
9 without charging an additional premium therefor at the time of, or
10 subsequent to, such event, also cover all occurrences between the incep-
11 tion date of the first such consecutive policy from such insurer and the
12 death or disability of the insured; PROVIDED, HOWEVER, THAT NO REGU-
13 LATION OF THE SUPERINTENDENT, NOR ANY PROVISION OF THIS SECTION NOTWITH-
14 STANDING, SHALL PRECLUDE AN INSURER, WHO ISSUES POLICIES TO PHYSICIANS
15 PRACTICING PSYCHIATRY, FROM OFFERING SUCH INSUREDS AN EXTENDED REPORTING
16 PERIOD THAT PROVIDES FOR A NONRENEWABLE AGGREGATE LIABILITY LIMIT EQUAL
17 TO AT LEAST ONE HUNDRED PERCENT OF THE POLICY'S ANNUAL AGGREGATE LIABIL-
18 ITY LIMIT; and
19 (3) the insurer shall make available and shall advise the insured of
20 the availability and cost of coverage for occurrences between the incep-
21 tion date of the first such consecutive policy from such insurer and the
22 termination of such policy which, subsequent to the termination date,
23 are reported in accordance with statutory and policy requirements,
24 pursuant to such terms and conditions as may be specified by the super-
25 intendent by regulation. The insured shall have the option of purchasing
26 such coverage either in a single payment, or in three annual install-
27 ments with an additional finance charge.
28 S 2. This act shall take effect on the first of January next succeed-
29 ing the date on which it shall have become a law and shall apply to
30 policies issued or renewed on or after such date.
