2006 New York Code - Professional Liability Protection For Certain Persons Ordered To Active Duty In Armed Forces.

 
    § 316-b. Professional liability protection for certain persons ordered
  to active duty in armed forces. 1. Definitions. As used in this section:
    (a)  The  term "active duty in state military service" means full-time
  status (other than for training) with a force  of  the  state  organized
  militia as defined in subdivision one of section two of this chapter.
    (b)  The  term  "active duty in military service of the United States"
  means full-time status (other than for training) in  the  United  States
  armed  forces  as  defined  in  subdivision eight of section one of this
  chapter.
    (c) The term "profession" includes occupation.
    (d) The term "professional" includes occupational.
    2. Applicability. This section applies to any person who:
    (a) is ordered to active duty (other  than  for  training)  in  either
  state  military  service  pursuant  to subdivision one of section six of
  this chapter, or in the military service of the United  States  pursuant
  to title 10 of the United States Code; and
    (b) immediately before receiving the order to active duty:
    (i)  was  engaged  in  the furnishing of health-care services or other
  services determined  by  the  secretary  of  state  to  be  professional
  services; and
    (ii) had in effect a professional liability insurance policy that does
  not  continue  to  cover claims filed with respect to such person during
  the period of the person's active duty unless the premiums are paid  for
  such coverage for such period.
    3.  Suspension  of  coverage.  (a) Coverage of a person referred to in
  subdivision two of this section by a  professional  liability  insurance
  policy  shall  be  suspended  in accordance with this subdivision if the
  insured requests such suspension in  writing  and  delivers  it  to  the
  insurance carrier by certified mail. The request shall be effective upon
  mailing.
    (b) A professional liability insurance carrier:
    (i)  shall  not  require  that  premiums  be paid by or on behalf of a
  person for  any  professional  liability  insurance  coverage  suspended
  pursuant to paragraph (a) of this subdivision; and
    (ii)  shall refund any amount paid for coverage for the period of such
  suspension or, upon the election of such person, apply such  amount  for
  the  payment  of any premium becoming due upon the reinstatement of such
  coverage.
    (c) A professional liability insurance carrier  shall  not  be  liable
  with  respect  to  any  claim  that  is  based  on  professional conduct
  (including any failure to take any action in a professional capacity) of
  a person that occurs during a period  of  suspension  of  that  person's
  professional   liability  insurance  under  this  subdivision.  For  the
  purposes of the preceding sentence, a claim based upon the failure of  a
  professional  to  make  adequate  provision for patients to be cared for
  during the period of the professional's active  duty  service  shall  be
  considered to be based on an action or failure to take action before the
  beginning   of  the  period  of  suspension  of  professional  liability
  insurance under this section, except in a  case  in  which  professional
  services were provided after the date of the beginning of such period.
    4.  Reinstatement  of  coverage.  (a) Professional liability insurance
  coverage suspended in the case of any  person  pursuant  to  subdivision
  three  of  this  section shall be reinstated by the insurance carrier on
  the date on which that person sends by certified mail to  the  insurance
  carrier a written request for reinstatement.
    (b)  The request of a person for reinstatement shall be effective upon
  mailing only if the person mails the request to the insurance carrier by
  certified mail within thirty days after the date on which the person  is
  released from active duty. The insurance carrier shall notify the person
  of  the  due  date  for  payment  of the premium of such insurance. Such
  premium shall be paid  by  the  person  within  thirty  days  after  the
  effective date of that notice.
    (c)  The  period  for  which professional liability insurance coverage
  shall be reinstated for a person under this  subdivision  shall  not  be
  less  than  the  balance  of  the  period  for which coverage would have
  continued under the insurance  policy  if  the  coverage  had  not  been
  suspended.
    5.  Increase  in  premium. An insurance carrier shall not increase the
  amount of the  premium  charged  for  professional  liability  insurance
  coverage  of  any  person for the minimum period of the reinstatement of
  such coverage required under paragraph (c) of subdivision four  of  this
  section  to  an  amount  greater  than  the  amount  chargeable for such
  coverage for such period before the suspension, except to the extent  of
  any  general increase in the premium amounts charged by that carrier for
  the same professional liability coverage for persons  similarly  covered
  by such insurance during the period of the suspension.
    6.  Continuation  of coverage of unaffected persons. This section does
  not:
    (a) require a suspension of professional liability insurance  coverage
  for  any  person  who  is not a person referred to in subdivision two of
  this section and who is  covered  by  the  same  professional  liability
  insurance as a person referred to in such subdivision; or
    (b)  relieve  any  person  of  the  obligation to pay premiums for the
  coverage not required to be suspended.
    7.  Stay  of  civil  or  administrative  actions.  (a)  A   civil   or
  administrative   action   for  damages  on  the  basis  of  the  alleged
  professional negligence or other  professional  liability  of  a  person
  whose professional liability insurance coverage has been suspended under
  subdivision  three  of this section shall be stayed until the end of the
  period of the suspension if:
    (i) the action was commenced during that period;
    (ii) the action is based on an act or omission  that  occurred  before
  the date on which the suspension became effective; and
    (iii) the suspended professional liability insurance would, except for
  the suspension, on its face cover the alleged professional negligence or
  other  professional liability negligence or other professional liability
  of the person.
    (b) Whenever a civil or administrative action for  damages  is  stayed
  pursuant to subparagraph (i) of paragraph (a) of this subdivision in the
  case of any person, the action shall be deemed to have been filed on the
  date  on  which  the  professional  liability insurance coverage of such
  person is reinstated under subdivision four of this section.
    8. Effect of suspension upon limitations period.  In  the  case  of  a
  civil  or administrative action for which a stay could have been granted
  under subdivision seven of this section by reason of the  suspension  of
  professional  liability  insurance  coverage of the defendant under this
  subdivision, the period of the  suspension  of  the  coverage  shall  be
  excluded  from  the computation of any statutory period of limitation on
  the commencement of such action.
    9. Death during period of suspension. If a person  whose  professional
  liability  insurance coverage is suspended pursuant to subdivision three
  of this section dies during the period of the suspension:
    (a) the requirement for the grant or continuance  of  a  stay  in  any
  civil or administrative action against such person pursuant to paragraph
  (a)  of subdivision seven of this section shall terminate on the date of
  the death of such person; and
    (b) the carrier of the professional liability insurance  so  suspended
  shall be liable for any claim for damages for professional negligence or
  other  professional  liability of the deceased person in the same manner
  and to the same extent as such carrier would be liable if the person had
  died while covered by such insurance but before the claim was filed.