§435C-4  Procedures.

  (a)(1)  Any licensed physician or hospital shall, on orafter the effective date of the plan of operation, apply to the plan for suchcoverage.  Such application may be made on behalf of an applicant by a producerauthorized by the applicant.

(2)  If the plan determines that the applicant meetsthe underwriting standards of the plan as provided in the plan of operation andthere is no unpaid, uncontested premium due from the applicant for priorinsurance (as shown by the insured having failed to make written objection tothe premium charges within thirty days after billing), then the plan, uponreceipt of the premium, or such portion thereof as is prescribed in the plan ofoperation, shall cause to be issued a policy of medical malpractice insurancefor 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 andstatistics relating thereto shall be subject to sections 431:14-101 to431:14-117 unless otherwise provided hereto, giving due consideration to thepast and prospective loss and expense experience within and outside this Statefor medical malpractice insurance of all of the member companies of the plan,trends in the frequency and severity of losses, the investment income of theplan, and such other information as the insurance commissioner may require;

(2)  Any deficit sustained by the plan in any one yearshall be recouped, pursuant to the plan of operation and the rating plan thenin 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 throughpolicyholder assessment or premium rate increase, shall be based upon theplan's loss and expense experience, together with such other information basedupon such experience as the insurance commissioner may deem appropriate.  Theresultant premium rates shall be on an actuarially sound basis and shall becalculated to be self-supporting;

(4)  In the event that sufficient funds are notavailable for the sound financial operation of the plan, pending recoupment asprovided in paragraph (3) of this subsection, all members shall, on a temporarybasis contribute to the financial requirements of the plan in the mannerprovided for in section 435C-5.  Any such contribution shall be reimbursed tothe members following recoupment as provided in paragraph (3) of thissubsection; and

(5)  The commissioner shall consider requiring theplan to offer policies on a claims made or occurrence basis; provided that thepremium rate charged for the policies shall be at rates established on anactuarially 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, c122, §94]