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The Bergen County Medical Society - reform draft (Page 4)

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The Bergen County Medical Society - reform draft
Renewal Notices ­ Sixty days notice must be given prior to renewing or non-
renewing a policy.

Rate Regulation ­ If a rate is in violation of the law and has increased by 25%,
the state may void that rate increase. Persons may petition the state to
investigate potentially illegal rates. The state will review the adequacy of an
insurance company's capitalization and reserves. Requirements for insurance
companies will also apply to attorneys in fact and others engaged in a reciprocal
exchange. A policyholder can apply to her insurance company for any savings
from this bill after the bill has been in effect at least 90 days.

Notices to Department of Banking and Insurance ­ All malpractice awards
must be noticed to the Department. The practitioner's specialty, but not her
name, must be provided.
Task Force ­ An eleven member task force is created to examine the issue of
medical liability insurance reforms and if the proper reform actions were taken
and if other actions need to be taken, including changes to reimbursement rates.
The task force would report back in nine months. MSNJ will select a member for
the Task Force. The seven public members will be appointed by the Governor
with the advice and consent of the Senate.
Charitable Immunity ­ The bill does not currently extend the charitable
immunity provisions of hospitals to hospital employees. This issue is still in
negotiation, but would not be applicable to physicians

Effective Date ­ The bill would apply to all birth injuries, even those incurred
prior to the bill's effective date. However, no person with a birth injury will be
given less than four years from the bill's effective date to bring suit. We are still
negotiating the applicability of the bill's provisions to all pending cases. This is
essential for immediate rate impacts.
G:\COMMON\Ray\malpractice\Summary near final Senate proposal 2-20-03.doc

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