§ 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.