Senate Bill S4412

                            
                    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:

  Section 1. Subsections (a) and (b) of section 3436  of  the  insurance
law,  subsection  (a)  and  the  opening  paragraph of subsection (b) as
amended by chapter 381 of the laws of 1991 and subsection (b)  as  added
by chapter 266 of the laws of 1986, are amended to read as follows:
  (a)  Every  insurer which issues or renews policies for primary levels
of medical malpractice insurance covering physicians licensed  to  prac-
tice  in this state shall issue such policies on a claims-made or occur-
rence basis, as prescribed by the superintendent by  regulation  SUBJECT
TO  THE  LIMITATIONS  SPECIFIED IN THIS SUBSECTION AND SUBSECTION (B) OF
THIS SECTION; provided, further, that  nothing  in  this  section  shall
preclude  any  insurer  from  applying otherwise applicable underwriting
standards in determining whether to issue or renew such policies.
  (b) A claims-made policy shall contain the following provisions:
  (1) if the insured has purchased a claims-made policy from an admitted
insurer for a period of five or more consecutive years and the  insured,
after  attaining the age of sixty-five or older, retires permanently and
totally from the practice of medicine or if the  insured  has  purchased
such  a  policy  for  a period of ten or more consecutive years, and the
insured, after attaining the age of fifty-five or older, retires  perma-
nently  and  totally  from  the practice of medicine, the insurer shall,
without charging an additional premium  therefor  at  the  time  of,  or
subsequent  to,  such retirement, also cover all occurrences between the
inception date of the first such consecutive policy  from  such  insurer
and  such retirement date which, subsequent to the termination date, are
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

HOWEVER, THAT NO REGULATION OF THE SUPERINTENDENT, NOR ANY PROVISION  OF
THIS  SECTION  NOTWITHSTANDING,  SHALL  PRECLUDE  AN INSURER, WHO ISSUES
POLICIES  TO  PHYSICIANS  PRACTICING  PSYCHIATRY,  FROM  OFFERING   SUCH
INSUREDS  AN  EXTENDED REPORTING PERIOD THAT PROVIDES FOR A NONRENEWABLE
AGGREGATE LIABILITY LIMIT EQUAL TO AT LEAST ONE HUNDRED PERCENT  OF  THE
POLICY'S ANNUAL AGGREGATE LIABILITY LIMIT;
  (2)  if the insured dies or becomes permanently disabled and unable to
practice medicine while covered by such a  policy,  the  insurer  shall,
without  charging  an  additional  premium  therefor  at the time of, or
subsequent to, such event, also cover all occurrences between the incep-
tion date of the first such consecutive policy from such insurer and the
death or disability of the insured; PROVIDED,  HOWEVER,  THAT  NO  REGU-
LATION OF THE SUPERINTENDENT, NOR ANY PROVISION OF THIS SECTION NOTWITH-
STANDING,  SHALL  PRECLUDE AN INSURER, WHO ISSUES POLICIES TO PHYSICIANS
PRACTICING PSYCHIATRY, FROM OFFERING SUCH INSUREDS AN EXTENDED REPORTING
PERIOD THAT PROVIDES FOR A NONRENEWABLE AGGREGATE LIABILITY LIMIT  EQUAL
TO AT LEAST ONE HUNDRED PERCENT OF THE POLICY'S ANNUAL AGGREGATE LIABIL-
ITY LIMIT; and
  (3)  the  insurer shall make available and shall advise the insured of
the availability and cost of coverage for occurrences between the incep-
tion date of the first such consecutive policy from such insurer and the
termination of such policy which, subsequent to  the  termination  date,
are  reported  in  accordance  with  statutory  and policy requirements,
pursuant to such terms and conditions as may be specified by the  super-
intendent by regulation. The insured shall have the option of purchasing
such  coverage  either  in a single payment, or in three annual install-
ments with an additional finance charge.
  S 2. This act shall take effect on the first of January next  succeed-
ing  the  date  on  which  it shall have become a law and shall apply to
policies issued or renewed on or after such date.