New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter III - Policy and Certificate Provisions › Subchapter B - Property and Casualty Insurance › Part 70 - Medical Malpractice Insurance Rate Modifications, Provisional Rates, Required Policy Provisions And Availability Of Additional Coverages › Section 70.9 - Physicians and surgeons medical malpractice insurance policy provisions for the period commencing July 1, 1988: required endorsement; established rates

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Pursuant to
				  section 40 of chapter 266 of the Laws of 1986, the superintendent was directed
				  to establish rates for policies providing coverage for physicians and surgeons
				  medical malpractice liability insurance for the periods commencing July 1, 1985
				  and ending June 30, 1988. It was not certain at that time whether the authority
				  of the superintendent to establish such rates would be extended for the policy
				  year commencing July 1, 1988 through June 30, 1989 or if the rates for such
				  period would revert to the prior approval requirements of article 23 of the
				  Insurance Law. Accordingly, all insurers that issue policies of physicians and
				  surgeons medical malpractice liability insurance, as defined in section
				  70.1(a)  of this
				  Part, and all insurers with special licenses under section 6302  of the
				  Insurance Law that issue policies including such coverage of physicians and
				  surgeons, were directed to forthwith furnish their insureds with the following
				  endorsement in connection with all such policies in effect on and after July 1,
				  1988:
"THE PREMIUMS ON THIS POLICY FOR THE PERIOD OF COVERAGE
					 COMMENCING ON OR AFTER JULY 1, 1988 THROUGH JUNE 30, 1989 ARE PROVISIONAL AND
					 SUBJECT TO UPWARD OR DOWNWARD ADJUSTMENT. INSUREDS MAY BE REQUIRED TO PAY AN
					 AMENDED PREMIUM RETROACTIVE TO JULY 1, 1988, OR THE ANNIVERSARY DATE OF THE
					 POLICY, WHICHEVER IS LATER OR BE ENTITLED TO A CREDIT IF IT IS DETERMINED THAT
					 A DOWNWARD ADJUSTMENT IS NECESSARY IN ORDER TO MEET STATUTORY RATING
					 STANDARDS."
(b) Pursuant to
				  section 19 of chapter 184 of the Laws of 1988, the superintendent is directed
				  to establish rates for policies providing coverage for physicians medical
				  malpractice liability insurance for the periods commencing July 1, 1988 and
				  ending June 30, 1991. The rates established herein for policies issued or
				  renewed during the year July 1, 1988 through June 30, 1989 supersede any rates
				  that may have been charged or billed by insurers for such policies prior to the
				  promulgation of this Part.
(c)
Rates for occurrence policies issued or renewed during the period July
				  1, 1988 through June 30, 1989.
(1)
				  For primary coverage, up to $1 million/$3 million, the rate shall be five
				  percent greater than that established pursuant to section
				  70.8(e)(3)(i)  of
				  this Part.
(2) For a first excess
				  layer providing $1 million/$3 million of excess coverage above $1 million/$3
				  million primary coverage, and purchased directly by a physician, the rate shall
				  be 46 percent of the $1 million/$3 million rate for primary coverage
				  established in paragraph (1) of this subdivision.
(3) For a first excess layer providing $1
				  million/$3 million of excess coverage above $1 million/$3 million primary
				  coverage, and purchased by a hospital in accordance with section 18 of chapter
				  184 of the Laws of 1988, the rate shall be 49.3 percent of the $1 million/$3
				  million rate for primary coverage established in paragraphs (1) of this
				  subdivision.
(4) For a second
				  excess layer providing $1 million/$3 million of excess coverage above the
				  underlying primary coverage and first layer of excess coverage, described in
				  paragraphs (2) and (3) of this subdivision, the rate shall be 30 percent of the
				  $1 million/$3 million rate for primary coverage established in paragraph (1) of
				  this subdivision.