§435C-4  Procedures.



  (a)(1)  Any licensed physician or hospital shall, on or
after the effective date of the plan of operation, apply to the plan for such
coverage.  Such application may be made on behalf of an applicant by a producer
authorized by the applicant.



(2)  If the plan determines that the applicant meets
the underwriting standards of the plan as provided in the plan of operation and
there is no unpaid, uncontested premium due from the applicant for prior
insurance (as shown by the insured having failed to make written objection to
the premium charges within thirty days after billing), then the plan, upon
receipt of the premium, or such portion thereof as is prescribed in the plan of
operation, shall cause to be issued a policy of medical malpractice insurance
for a term of one year.



  (b)(1)  The rates, rating plan, rating classifications,
territory, and policy forms applicable to the insurance written by the plan and
statistics relating thereto shall be subject to sections 431:14-101 to
431:14-117 unless otherwise provided hereto, giving due consideration to the
past and prospective loss and expense experience within and outside this State
for medical malpractice insurance of all of the member companies of the plan,
trends in the frequency and severity of losses, the investment income of the
plan, and such other information as the insurance commissioner may require;



(2)  Any deficit sustained by the plan in any one year
shall be recouped, pursuant to the plan of operation and the rating plan then
in effect by one or both of the following procedures:



(A)  An assessment upon the policyholders; or



(B)  A rate increase applicable prospectively;



(3)  Effective after the initial year of operation,
rating plans and rating rules, and any provisions of recoupment through
policyholder assessment or premium rate increase, shall be based upon the
plan's loss and expense experience, together with such other information based
upon such experience as the insurance commissioner may deem appropriate.  The
resultant premium rates shall be on an actuarially sound basis and shall be
calculated to be self-supporting;



(4)  In the event that sufficient funds are not
available for the sound financial operation of the plan, pending recoupment as
provided in paragraph (3) of this subsection, all members shall, on a temporary
basis contribute to the financial requirements of the plan in the manner
provided for in section 435C-5.  Any such contribution shall be reimbursed to
the members following recoupment as provided in paragraph (3) of this
subsection; and



(5)  The commissioner shall consider requiring the
plan to offer policies on a claims made or occurrence basis; provided that the
premium rate charged for the policies shall be at rates established on an
actuarially sound basis and that are calculated to be self-supporting. [L 1975,
c 161, pt of §1; am L 1998, c 204, §2; am L 2002, c 155, §105; am L 2004, c
122, §94]