senate Bill S5704

Relates to excess medical malpractice insurance and extending the effectiveness thereof

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 06 / Jun / 2013
    • REFERRED TO INSURANCE
  • 20 / Jun / 2013
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 20 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1504
  • 20 / Jun / 2013
    • SUBSTITUTED BY A7388

Summary

Relates to excess medical malpractice insurance and extending the effectiveness thereof.

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Bill Details

See Assembly Version of this Bill:
A7388
Versions:
S5704
Legislative Cycle:
2013-2014
Law Section:
Insurance
Laws Affected:
Amd ยง2, Chap 673 of 2005

Sponsor Memo

BILL NUMBER:S5704

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.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5704

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              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, [2013] 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

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