NY State Senate Bill 2017-S5673

Senate Bill S5673

2017-2018 Legislative Session

Requires physicians licensed to practice medicine in the state to have medical malpractice insurance coverage from an insurer authorized to do business in the state

download bill text pdf

Archive: Last Bill Status - In Senate Committee Insurance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to insurance
Apr 25, 2017	referred to insurance

2017-S5673 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §3436, Ins L; amd §§6524 & 6525, Ed L
Versions Introduced in 2015-2016 Legislative Session:: S5224

2017-S5673 (ACTIVE) - Summary

Requires physicians licensed to practice medicine in the state to have medical malpractice insurance coverage from an insurer authorized to do business in the state.

2017-S5673 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5673

 TITLE OF BILL :  An act to amend the insurance law and the education
law, in relation to medical malpractice insurance requirements for
physicians licensed to practice medicine in this state

 PURPOSE :

Requires physicians licensed or permitted to practice medicine in the
state to have medical malpractice insurance coverage from an insurer
authorized to do business in the state.

 SUMMARY OF PROVISIONS :

Section one describes the legislative intent of the bill. As a matter
of patient safety and the larger public safety, it is in the state's
interest to encourage licensed medical practitioners to purchase
insurance which provides the highest degree of financial security. To
that end, the state considers it important to not just encourage
physicians to acquire medical malpractice professional liability
insurance, but to require them to do so from companies admitted to
write insurance in New York.

Section two amends subsection (a) of section 3436 of the insurance law
requires licensed physicians, unless exempt due to membership in a
voluntary attending physician ("Channeling") program, to obtain

professional liability insurance from an admitted insurer if they were
to chose to acquire any form of professional liability coverage.

Section three amends section 6524 of the education law to require that
those who intend to engage in the practice of medicine in the state
and intend to purchase professional liability coverage must purchase
such coverage through an admitted insurer.

Section four amends section 6525 of the education law makes the same
requirement as section 3 of the bill upon any applicant for or holder
of a permit to practice medicine.

Section five provides for an effective date.

 JUSTIFICATION :

Patient safety is not just a clinical concern, but a financial one as
well. Nothing assures the financial soundness of an insurer better
than compulsory adherence to the strongest standards in the country
enforced by a regulator who is in the state, no matter how secure a
carrier may appear to be, and nothing assures the financial security
backstopping a physician's activities than such an insurer.
Therefore, it is important to regulate the purchasing behavior of such
physicians by compelling their acquisition of professional liability
insurance when they choose to buy such coverage.

New York already, and has for thirty years, directed purchasing
activities of physicians by requiring them to purchase admitted
carrier professional liability coverage if they wanted to participate
in the excess medical malpractice program, which provides a second
layer of coverage for no cost to physicians.

 LEGISLATIVE HISTORY :

2016: S.5224

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediately, provided that for the policies in force on the effective
date and written by an insurer not authorized to do business in this
state, the provisions shall apply on or after the anniversary date of
such policy.

2017-S5673 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5673
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              April 25, 2017
                                ___________
 
 Introduced  by  Sen.  HANNON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law and the education law, in relation  to
   medical  malpractice insurance requirements for physicians licensed to
   practice medicine in this state

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Legislative  intent.  The legislature has long recognized
 that medical malpractice insurance is a vital component of  the  state's
 health  care system and economic safety net. Medical malpractice is that
 which is relied upon by both practicing physicians, dentists  and  other
 health  care  professionals,  and  patients  who  become the victim of a
 negligent health care act. It is in the interest  of  all  New  Yorkers,
 therefore,  that  medical  malpractice  insurance  which  is obtained by
 health care providers practicing according to the privileges granted  by
 a  license issued by the state be of a kind and nature that provides the
 highest degree of financial security. This should include, in the legis-
 lature's estimation, medical malpractice insurance which is regulated by
 this state's insurance company regulator and medical malpractice  carri-
 ers  whose  policies  are  protected  by  a  guaranty  fund, such as the
 property/casualty insurance  security  fund  which  was  established  to
 protect  claimants  and  policyholders from the difficulties encountered
 from an insurance company insolvency. Therefore, it is the legislature's
 intent to assure the  highest  degree  of  protection  for  patient  and
 provider  alike  by  requiring  as  a  condition of practicing medicine,
 dentistry or other health care profession in the state, the purchase  of
 medical,  dental or other forms of health care practitioner professional
 liability insurance from an insurer authorized to write  such  coverages
 in  this  state,  and protected by the appropriate security fund if such
 insurance is to be obtained by a  licensed  health  care  provider.  The
 legislature   further  directs  that  the  superintendent  of  financial
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02955-01-7

 S. 5673                             2
 
 services shall maintain a market surveillance to assure  that  all  such
 health  care provider insurance coverages are available in the state, or
 inform the legislature when such coverage for any given  provider  class
 is not available.
   §  2.  Subsection (a) of section 3436 of the insurance law, as amended
 by chapter 381 of the laws of 1991, is 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; AND
 EVERY PHYSICIAN LICENSED TO PRACTICE MEDICINE IN THIS STATE WHO  OBTAINS
 OR  INTENDS TO OBTAIN A POLICY OF MEDICAL MALPRACTICE INSURANCE, WHETHER
 ON A CLAIMS-MADE OR OCCURRENCE BASIS, EQUIVALENT TO  THE  PRIMARY  LIMIT
 PROVIDED FOR IN SECTION EIGHTEEN OF CHAPTER TWO HUNDRED SIXTY-SIX OF THE
 LAWS  OF NINETEEN HUNDRED EIGHTY-SIX, AS AMENDED, TO COVER THE TREATMENT
 OF PATIENTS OR OTHER LIABILITIES ARISING FROM THEIR PRACTICE OF MEDICINE
 PURSUANT TO HIS OR HER LICENSE TO DO SO IN THIS STATE SHALL DO  SO  ONLY
 FROM  AN  AUTHORIZED  INSURER  ACTUALLY  WRITING  SUCH INSURANCE IN THIS
 STATE, OR FROM THE MEDICAL MALPRACTICE INSURANCE POOL; PROVIDED,  HOWEV-
 ER,  THAT  THIS  SHALL  NOT  APPLY TO ANY PHYSICIAN COVERED BY A MEDICAL
 MALPRACTICE POLICY ISSUED BY OR COVERAGE THROUGH A  VOLUNTARY  ATTENDING
 PHYSICIAN   ("CHANNELING")   PROGRAM  APPROVED  BY  THE  SUPERINTENDENT;
 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.
   § 3. Section 6524 of the education law is  amended  by  adding  a  new
 subdivision 12 to read as follows:
   (12)  MALPRACTICE  INSURANCE:  WHERE AN APPLICANT INTENDS TO ENGAGE IN
 THE TREATMENT OF PATIENTS AS A PHYSICIAN  AND  INTENDS  TO  PROCURE  AND
 MAINTAIN IN FULL FORCE AND EFFECT A POLICY OF MEDICAL MALPRACTICE INSUR-
 ANCE EQUIVALENT TO THE PRIMARY LIMIT PROVIDED FOR IN SECTION EIGHTEEN OF
 CHAPTER  TWO  HUNDRED  SIXTY-SIX OF THE LAWS OF NINETEEN HUNDRED EIGHTY-
 SIX, AS AMENDED, SUCH AN APPLICANT MAY ONLY OBTAIN SUCH INSURANCE COVER-
 AGE FROM AN INSURER AUTHORIZED TO DO BUSINESS IN THIS STATE AND ACTUALLY
 WRITING SUCH COVERAGE IN THIS STATE, OR  FROM  THE  MEDICAL  MALPRACTICE
 INSURANCE POOL.
   §  4.  Section  6525  of  the education law is amended by adding a new
 subdivision 5 to read as follows:
   5. MALPRACTICE INSURANCE. EVERY APPLICANT FOR AND HOLDER OF  A  PERMIT
 TO  PRACTICE MEDICINE PURSUANT TO THIS SECTION WHO OBTAINS OR INTENDS TO
 OBTAIN A POLICY OF  MEDICAL  MALPRACTICE  INSURANCE  EQUIVALENT  TO  THE
 PRIMARY  LIMIT  PROVIDED  FOR IN SECTION EIGHTEEN OF CHAPTER TWO HUNDRED
 SIXTY-SIX OF THE LAWS OF NINETEEN HUNDRED EIGHTY-SIX, AS AMENDED,  SHALL
 DO  SO  ONLY FROM AN INSURER AUTHORIZED TO DO BUSINESS IN THIS STATE AND
 ACTUALLY WRITING SUCH INSURANCE COVERAGE IN  THIS  STATE,  OR  FROM  THE
 MEDICAL MALPRACTICE INSURANCE POOL.
   §  5.  This act shall take effect immediately; provided, however, that
 for policies in force on such effective date and written by  an  insurer
 not  authorized to do business in this state, the provisions of this act
 shall apply on and after the anniversary date of such policies.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.