MMIP "second layer" not required.
Albany, N.Y. -- The statutory clarification that the Medical Malpractice Insurance Pool ("MMIP") is not required to offer a second layer of excess medical malpractice insurance coverage is extended from July 1, 2013 to July 1, 2018. The bill was signed into law as Chapter 80 by Gov. Andrew M. Cuomo on June 30, 2013. The sponsors of the bill were Senator James Seward (R, C, I-Cayuga) (S5704) and Assemblyman Steven Cymbrowitz (D, WF-Kings) (A7388).
"In 1999, legislation was passed to dissolve the Medical Malpractice Insurance Association ('MMIA'), the market of last resort for medical malpractice insurance. Upon MMIA'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. Upon initial distribution, i.e., the July 1, 2000 through June 30, 2001 policy 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 has MMIA not been dissolved, including a second layer of excess coverage," said Senator Seward.
"Currently, no authorized medical malpractice insurer offers a second excess layer of coverage to its insured physicians, dentists or podiatrists. It is both unfair and illogical to require MMIP to bear the financial burden associated with providing a second layer of excess malpractice insurance to such health care providers where industry 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 policy holders. This law will continue to correct this inequity by clarifying that MMIP is not required to offer a second layer of excess medical malpractice insurance," said Assemblyman Cymbrowitz.
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|Title Annotation:||IN THE NEWS|
|Date:||Sep 9, 2013|
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