N.J. Admin. Code § 11:27-5.3

Current through Register Vol. 57, No. 1, January 6, 2025

Section 11:27-5.3 - Prohibited premium increase

(a) An insurer authorized to transact medical malpractice liability insurance in this State shall not increase the premium of any medical malpractice liability insurance policy upon the renewal of that policy on the basis of a claim of medical negligence or malpractice against the insured if the insured is dismissed from a lawsuit alleging medical negligence or malpractice based upon that claim, with no indemnity payment by the insurer, prior to or within 180 days after the filing of the last responsive pleading in the action.

(b) In the assignment of the premium of any new business medical malpractice liability insurance policy, an insurer authorized as set forth in (a) above shall not consider a claim of medical negligence or malpractice against the insured if the insured is dismissed from a lawsuit alleging medical negligence or malpractice based upon that claim, with no indemnity payment by the insurer, prior to or within 180 days after the filing of the last responsive pleading in the action.

(c) An insurer authorized as set forth in (a) above which considers, in the assignment of a premium on any medical malpractice liability insurance policy a claim of medical negligence or malpractice against the insured which was pending at the time of the assignment of a premium shall, in the event that a lawsuit based upon that claim is subsequently dismissed as to the insured within 180 days after the filing of the last responsive pleading in the action, with no indemnity payment by the insurer attributable to that claim, upon the renewal next succeeding such a dismissal, reflect the elimination of this claim in the calculation of the renewal premium.

(d) Where required by N.J.S.A. 17:29AA-5 and N.J.A.C. 11:1-2, an insurer authorized to transact medical malpractice liability insurance in this State shall file a manual rule as to this provision with the Department of Banking and Insurance for inclusion in the company's manual.

N.J. Admin. Code § 11:27-5.3

Amended by R.2006 d.247, effective 7/3/2006.
See: 38 N.J.R. 1510(a), 38 N.J.R. 2833(a).
Added present (b); recodified former (b) and (c) as (c) and (d); and rewrote (c).