2023 New York Laws › ISC - Insurance › Article 23 - Property/casualty Insurance Rates › 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-five.
(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.