§ 2343 — Medical malpractice insurance rates; special additional provisions regarding such rates

§ 2343. Medical malpractice insurance rates; special additional\nprovisions regarding such rates. (a) Whereas the provisions of a chapter\nof the laws of nineteen hundred eighty-five regarding medical and dental\nmalpractice will have both a prospective and retrospective effect upon\nthe loss experience of physicians, dentists and hospitals professional\nliability insurers, including the medical malpractice insurance\nassociation, the superintendent is directed forthwith to review rates\npreviously in effect for the period commencing July first, nineteen\nhundred eighty-four and ending June thirtieth, nineteen hundred\neighty-five, and, where appropriate, require modification of such rates\nfor such period.\n (b) Any such modified rate shall remain in effect as a provisional\nrate for the period commencing July first, nineteen hundred eighty-five\nand ending on November thirtieth, nineteen hundred eighty-five. The\nsuperintendent, subsequent to December first, nineteen hundred\neighty-five, shall approve final rates for the period commencing July\nfirst, nineteen hundred eighty-five and ending June thirtieth, nineteen\nhundred eighty-six. No insurer shall have the duty to file for final\nrates for the period commencing July first, nineteen hundred eighty-five\nprior to December first, nineteen hundred eighty-five.\n (c) Notwithstanding any other provision of this chapter, no\napplication for an order of rehabilitation or liquidation of a domestic\ninsurer whose primary liability arises from the business of medical\nmalpractice insurance, as that term is defined in subsection (b) of\nsection five thousand five hundred one of this chapter, shall be made on\nthe grounds specified in subsection (a) or (c) of section seven thousand\nfour hundred two of this chapter at any time prior to December\nthirty-first, two thousand twenty-eight.\n (d) The superintendent shall promulgate a regulation, which may be\namended from time to time, establishing a physicians professional\nliability insurance merit rating plan applicable to medical malpractice\ninsurance coverage whether written as an individual policy or through a\nvoluntary attending physician ("channeling") program previously\npermitted by the superintendent which reflects an individual physician's\nor surgeon's experience with respect to incidents or occurrences of\nalleged medical malpractice. The regulation shall establish standards\nand limitations intended to insure that merit rating plans are\nreasonable and are not unfairly discriminatory, inequitable, violative\nof public policy or otherwise contrary to the best interests of the\npeople of this state. Such regulation shall include:\n (1) reasonable standards to be applied in arriving at premium rates,\nsurcharges and discounts based on an evaluation of the hazards of the\ninsured, geographical area, specialties of practice, past and\nprospective loss and expense experience for medical malpractice\ninsurance written and to be written in this state, trends in the\nfrequency and severity of losses, and the limited nature, if any, of the\npractice of the insured;\n (2) rules for recognizing experience of individual risks;\n (3) any other factors deemed relevant in a system of merit rating for\nthe purpose of establishing equitable merit rates.\n The superintendent shall also consider, in establishing such\nregulation, whether premium rates unfairly burden physicians who are\ninitiating their practice, those who are transitioning to retirement or\nthose who practice part-time or hold academic positions.\n Insurers shall review merit rating plans which were approved by the\nsuperintendent prior to the promulgation of the regulation required by\nthis subsection and shall, before January first, nineteen hundred\neighty-six, file with the superintendent statements that their merit\nrating plans conform with the regulation, or file an appropriate plan or\namendments to their existing plans which will bring them into compliance\nwith the standards of the regulation. Any such amendments shall become\neffective upon approval by the superintendent.\n (e) The superintendent may approve an appropriate premium reduction\nfor an insured physician who successfully completes a risk management\ncourse, which must be approved by the superintendent subject to such\nstandards as the superintendent may prescribe by regulation. In\nprescribing such regulation the superintendent may consult with the\ncommissioner of health.\n