What's happening
This bill requires New York physicians to obtain medical malpractice insurance only from authorized in-state insurers or the state insurance pool.
Why it matters
Limits physician malpractice insurance to in-state, regulated insurers or the state pool. , which means New York doctors can no longer buy coverage from out-of-state or unauthorized insurers, tightening oversight and regulatory control.
Ensures patient claims are protected by state security funds if an insurer becomes insolvent. , potentially reducing the risk that a patient won't be compensated if a doctor's insurance company fails.
May impact insurance costs and market competition. for physicians, as restricting insurance options to in-state companies or the pool could affect premiums, availability, and the negotiating power of doctors.
Strengthens state oversight and consumer protection. by requiring the insurance superintendent to monitor availability and inform the legislature if coverage is lacking for any provider class, aiming to prevent coverage gaps in the market.
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Who cares
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Require Doctors' Malpractice Insurance
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to insurance
- Referred to insurance
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5673
2017-2018 Regular Sessions
IN SENATE
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 Assembly, 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 legislature's estimation, medical malpractice insurance which is regulated by this state's insurance company regulator and medical malpractice carriers 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 practice in this state shall issue such policies on a claims-made or occurrence 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, however, 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 insurance equivalent to the primary limit provided for in section eighteen of chapter two hundred sixty-six of the laws of nineteen hundred eightysix, as amended, such an applicant may only obtain such insurance coverage 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.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.