BILL NUMBER: S7057

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend chapter 673 of the laws of 2005, amending the insurance
law relating to excess medical malpractice insurance, in relation to the
effectiveness of the provisions of such chapter

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would extend until July 1, 2028 the elimination of the
requirement that the Medical Malpractice Insurance Pobl offer a second
layer of excess medical malpractice insurance coverage.

 
SUMMARY OF SPECIFIC PROVISIONS:

This bill would extend from July 1, 2023 to July 1, 2028 the statutory
clarification that the Medical Malpractice Insurance Pool (MMIP) is not
required to offer a second layer of excess medical malpractice insurance
coverage.

              

 
JUSTIFICATION:

In 1999, legislation was passed to dissolve the Medical Malpractice
Insurance. Association ("MMIA"), the market of last resort for medical
malpractice insurance (Chapter 407 of the laws of 1999). Upon MIA's
dissolution, the MMIP was established as a source of medical malpractice
insurance for health care providers who were unable to procure such
insurance in the voluntary market. Chapter 407 required that upon
initial distribution, i.e., the July 1, 2000 through June 30, 2001 poli-
cy year, MMIA insureds were to receive policies with provisions and at
rates which were at least as favorable to the insureds as what they
would have received upon renewal had MMIA not been dissolved, including
a second layer of excess coverage.

Currently, no authorized medical malpractice insurer offers a second
excess layer of coverage to its insured physicians, dentists or podia-
trists. It is both unfair and illogical to require MMIP to bear the
financial burden associated with providing a second layer of excess
medical malpractice insurance to such health care providers where indus-
try practice does not make such insurance available.  Without this
extension MMIP will be required to provide a second layer of excess
medical malpractice insurance in the involuntary market despite the fact
that no MMIP member insurer will provide in the voluntary market such
coverage to its own policyholders. This bill will continue to correct
this inequity by clarifying that MMIP is not required to offer a second
layer of excess medical malpractice insurance.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None noted.

 
EFFECTIVE DATE:
Immediately.