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 70.8 - Physicians medical malpractice liability insurance rates for claims-made and occurrence primary and excess policies and claims-made tail coverage

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Pending
				  enactment of chapter 266 of the Laws of 1986, which was signed into law on July
				  8, 1986, all physicians medical malpractice liability insurers were directed by
				  the Fifth Amendment to Part 70 of this Title (section
				  70.8  repealed by the eighth
				  amendment of this Part) that the rates for the policy period commencing July 1,
				  1986 and ending June 30, 1987 would continue to be, on a provisional basis, the
				  rates last approved by the department for said insurers. All insurers that
				  issued policies of 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 issued policies including such coverage were directed to
				  furnish their insureds with the following endorsement in connection with all
				  such policies in effect on and after July 1, 1986:
"THE PREMIUMS ON THIS POLICY FOR THE PERIOD OF COVERAGE
					 COMMENCING ON OR AFTER JULY 1, 1986 THROUGH JUNE 30, 1987 ARE PROVISIONAL AND
					 ARE SUBJECT TO UPWARD OR DOWNWARD ADJUSTMENT. INSUREDS MAY BE REQUIRED TO PAY
					 AN AMENDED PREMIUM RETROACTIVE TO JULY 1, 1986, 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 40 of chapter 266 of the Laws of 1986, the superintendent was directed
				  to establish rates for policies providing coverage for physicians medical
				  malpractice liability insurance for the periods commencing July 1, 1985 and
				  ending June 30, 1988. The rates established herein for policies issued or
				  renewed during the year July 1, 1985 through June 30, 1986 supersede the
				  provisional rates mandated by section
				  70.5  of this Part for primary
				  coverage and by section
				  70.6  of this Part for excess
				  coverage, and interim rate increases, if any, approved by the superintendent
				  for such policy year, and the rates established by prior amendment of this
				  section, where inconsistent with this amendment. The rates established herein
				  for policies issued or renewed during the year July 1, 1986 through June 30,
				  1987 supersede the rates established by prior amendment of this section, where
				  inconsistent with this amendment. Insurers shall charge a rate for physicians
				  medical malpractice liability insurance only as established by the
				  superintendent.
(c)
Base year
				  occurrence rates.
(1) For the purposes
				  of this Part, the base year occurrence rate shall be the occurrence rate
				  approved for the insurer by the superintendent for policies issued or renewed
				  during the year July 1, 1984 through June 30, 1985, as reduced by the
				  15-percent downward modification mandated by section
				  70.5(c)(1)  of
				  this Part.
(2) For any insurer that
				  had no base year occurrence rate as provided in paragraph (1) of this
				  subdivision, but had a claims-made rate approved, the base year occurrence rate
				  shall be the third year claims-made rate approved by the superintendent, as
				  reduced by the 15-percent downward modification mandated by section
				  70.5(c)(1)  of
				  this Part, multiplied by 1.158.
(3)
				  For any insurer that utilized a rate which has not been approved by the
				  superintendent, and for any insurer that has not previously written policies
				  subject to this Part, the base year occurrence rate shall be the approved rate
				  of another insurer, that is most appropriate for that insurer, together with
				  any modification which can be adequately supported. Such rate shall not be used
				  until established by the superintendent.