There is a Limit to Med Mal Insurance in NYS
The petitioner in this case is seeking a judgment to require the Superintendent of Insurance to hold a hearing in regard to a decision that he made that reduced the petitioner’s proposed rate increase by approximately 85%. The Superintendent has cross moved to have this petition dismissed.
The Long Island petitioner is a non-profit entity that is comprised of insurance companies that write personal liability insurance policies in the state of New York. Membership with the petitioner is required of companies that have the authority to write this type of insurance policy in the state. The petitioner is required to provide medical malpractice insurance to any physician or surgeon that is licensed in the state of New York. The amount of the policy is up to an aggregate limit of $3,000,000.
The petitioner develops and files rates that have to meet certain criteria. The reason for this is to assure the financial soundness of the association without having to charge excessive premiums for the malpractice coverage. The superintendent has the right to disapprove the rate filings, but must state his reasons for doing so.
Case Discussion and Decision
The petitioner filed for a 210% increase in April and again in October. The Superintendent studied the rate filing and that of another malpractice carrier. The independent firm that was used by the Superintendent recommended a rate increase of 107%.
The petitioner is asking for a hearing in order to gather information about the decision that was made by the Superintendent to deny the rate increase. This is not an adversary proceeding.
The court feels that it is within the rights of the petitioner to request this hearing and therefor is settling the case accordingly. A hearing will be held within two months of the date this judgment is entered.
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