N.Y. Insurance Law § 2343: Medical malpractice insurance rates; special additional provisions regarding such rates

§ 2343. Medical malpractice insurance rates; special additional

provisions regarding such rates. (a) Whereas the provisions of a chapter

of the laws of nineteen hundred eighty-five regarding medical and dental

malpractice will have both a prospective and retrospective effect upon

the loss experience of physicians, dentists and hospitals professional

liability insurers, including the medical malpractice insurance

association, the superintendent is directed forthwith to review rates

previously in effect for the period commencing July first, nineteen

hundred eighty-four and ending June thirtieth, nineteen hundred

eighty-five, and, where appropriate, require modification of such rates

for such period.

(b) Any such modified rate shall remain in effect as a provisional

rate for the period commencing July first, nineteen hundred eighty-five

and ending on November thirtieth, nineteen hundred eighty-five. The

superintendent, subsequent to December first, nineteen hundred

eighty-five, shall approve final rates for the period commencing July

first, nineteen hundred eighty-five and ending June thirtieth, nineteen

hundred eighty-six. No insurer shall have the duty to file for final

rates for the period commencing July first, nineteen hundred eighty-five

prior to December first, nineteen hundred eighty-five.

(c) Notwithstanding any other provision of this chapter, no

application for an order of rehabilitation or liquidation of a domestic

insurer whose primary liability arises from the business of medical

malpractice insurance, as that term is defined in subsection (b) of

section five thousand five hundred one of this chapter, shall be made on

the grounds specified in subsection (a) or (c) of section seven thousand

four hundred two of this chapter at any time prior to December

thirty-first, two thousand twenty-eight.

(d) The superintendent shall promulgate a regulation, which may be

amended from time to time, establishing a physicians professional

liability insurance merit rating plan applicable to medical malpractice

insurance coverage whether written as an individual policy or through a

voluntary attending physician ("channeling") program previously

permitted by the superintendent which reflects an individual physician's

or surgeon's experience with respect to incidents or occurrences of

alleged medical malpractice. The regulation shall establish standards

and limitations intended to insure that merit rating plans are

reasonable and are not unfairly discriminatory, inequitable, violative

of public policy or otherwise contrary to the best interests of the

people of this state. Such regulation shall include:

(1) reasonable standards to be applied in arriving at premium rates,

surcharges and discounts based on an evaluation of the hazards of the

insured, geographical area, specialties of practice, past and

prospective loss and expense experience for medical malpractice

insurance written and to be written in this state, trends in the

frequency and severity of losses, and the limited nature, if any, of the

practice of the insured;

(2) rules for recognizing experience of individual risks;

(3) any other factors deemed relevant in a system of merit rating for

the purpose of establishing equitable merit rates.

The superintendent shall also consider, in establishing such

regulation, whether premium rates unfairly burden physicians who are

initiating their practice, those who are transitioning to retirement or

those who practice part-time or hold academic positions.

Insurers shall review merit rating plans which were approved by the

superintendent prior to the promulgation of the regulation required by

this subsection and shall, before January first, nineteen hundred

eighty-six, file with the superintendent statements that their merit

rating plans conform with the regulation, or file an appropriate plan or

amendments to their existing plans which will bring them into compliance

with the standards of the regulation. Any such amendments shall become

effective upon approval by the superintendent.

(e) The superintendent may approve an appropriate premium reduction

for an insured physician who successfully completes a risk management

course, which must be approved by the superintendent subject to such

standards as the superintendent may prescribe by regulation. In

prescribing such regulation the superintendent may consult with the

commissioner of health.