State Codes and Statutes

Statutes > New-jersey > Title-17 > Section-17-30d > 17-30d-8

17:30D-8.  Insureds without availability of insurance;  activation of association;  designation of provider or direct basis insurance;  acceptance of  risks;  noninterference with agents    On and after the date that reinsurance is available from the association:

    a.  The commissioner after a hearing and on the basis of the facts developed  at such hearing may make a finding that medical malpractice liability insurance  is not readily available for any category or subcategory of insureds to which  this act applies, and after such a finding activate the facility with respect  to such category or subcategory.

    b.  Upon such activation, the board shall issue an invitation to each member  of the association which has written during the 24 months preceding the date of  such activation medical malpractice liability insurance of the type for which  the association was activated anywhere in the United States of America, to  become a qualified provider of such coverage in this State. If the board  qualifies no company as a provider or if the commissioner determines after a  hearing and on the basis of facts developed at such hearing, that the company  or companies were not properly qualified, the commissioner shall order the  association to write medical malpractice liability insurance on a direct basis  and the association shall file within 30 days rates, rating plans, rules and  classifications for the category or subcategory of insureds for which the  association will be writing insurance on a direct basis.  If the association  does not submit such a filing within the prescribed number of days or during  any extension granted by the commissioner, the commissioner shall promulgate  the rates, rating plans, rules and classifications, certify same and order the  association to insure eligible risks in accordance with the terms of his order.   Qualified providers shall be compensated in accordance with the provisions of  the plan of operation.

    c.  No member of the association qualified as a provider in accordance with  this section shall refuse to issue to any eligible risk a policy of insurance  of the type normally afforded by such insurer to the public, utilizing the  rates, rating plans, rules and classification systems then in effect for such  insurer;  provided, however, that the coverages and coverage limits to be  afforded may be ceded to the association;  and provided further that nothing  herein contained shall require an insurer to accept any risk if such insurer's  policy forms or rates do not apply to such risk;

    d.  No duly licensed insurance agent of a qualified provider broker or solicitor shall refuse to furnish to any eligible risk quotations of premiums for such provider with whom such agent, broker or solicitor regularly places medical malpractice liability insurance policies, or shall fail to submit any eligible risk to such provider;

    e.  No company shall terminate any agent or restrict the authority of any agent, directly or indirectly, or in any manner whatsoever, solely by reason of  the volume of such agent's business it cedes to the association or the experience produced by such ceded business.  Neither shall any company make any  distinction in remuneration to the agent between business retained and business  ceded, or use any promise of reward or threat of penalty, present or future, or  any device whatever, related to certain classes of risks or other classes of  business, which would tend to induce the agent to avoid certain classes or  types of risks.

     L.1975, c. 301, s. 8, eff. Jan. 30, 1976.  Amended by L.1978, c. 153, s. 6.