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Sponsors
No co-sponsors yet.
History
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to medical malpractice excess line insurance
In Assembly Committee · Insurance · Sponsor Kevin Cahill
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to excess line coverage for certain medical malpractice insurance
Purpose
To repeal the requirement that excess line brokers must obtain a declination from the medical malpractice insurance pool before the broker can place primary malpractice insurance in the excess line market
Summary of provisions
Section 1 amends subsection (e) of section 2118 of the insurance law. Section 2 is the effective date.
Justification
New York State continues to suffer in numerous ways from a malfunctioning medical malpractice insurance marketplace that many describe as a crisis. There are only four insurers which assume a significant volume of medical malpractice business, insuring over 80% of the entire New York market. Three of those insurers support the fourth insurer financially by bearing a portion of the losses which exceed premium. That fourth market is the residual market, Medical Malpractice Insurance Pool ("MMIP"). MMIP exists to underwrite all medical malpractice risks rejected by licensed insurers. MMIP insures physicians and hospitals which cannot obtain insurance from other licensed insurers in New York willing to write medical malpractice risks.
New York Law (§ 2118(e) (2) (A) (ii)) currently requires excess line brokers to obtain a declination from the MMIP before the broker can place primary malpractice insurance in the excess line market. As a practical matter, MMIP will not decline such risks except in the rarest of circumstances, which, by and large, bars the excess line market from this line of business in New York. This bill would repeal the requirement for the excess line brokers to obtain a declination from the MMIP. Repealing the MMIP declination requirement will provide doctors, dentists and general hospitals a broader array of choices, products, terms and conditions to suit a professional's particular insurance needs. While all insurers, including MMIP, will be permitted to continue to make available their malpractice insurance products, the addition of excess line insurers will allow insureds greater choice in the selection of insurance policies which best suit their needs from a number of additional, highly rated insurers.
While excess line brokers will continue to be required to diligently search the licensed market before placing coverage with an excess line insurer, the insured professional will be permitted to accept an offer of coverage from an excess line insurer when the policy terms and conditions are superior to those offered by MMIP. This legislation will bolster the marketplace and treat the medical malpractice residual market MMIP, in a manner consistent with the New York Property Insurance Association and the Assigned Risk Plan. As a result, these changes will provide medical professionals with more secure coverage options, while also benefiting consumers who need protection and support should an unfortunate medical event occur.
Legislative history
New bill.
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.