On March 30, 2004, Senate Bill 187, a bill pertaining to deferred annuities, sponsored by State Senator Scott Nein ( R - Middletown ), was heard, substituted and amended. The amendment was included at the request of the Ohio Department of Insurance and pertains to the cancellation and renewal of medical malpractice insurance policies. The Ohio Senate unanimously passed the measure that would increase the statutory notice requirement for the cancellation or non-renewal of medical malpractice insurance from 30 to 60 days.
S.B. 187, requires medical liability insurance companies to provide physicians 60-days notice if their policy is being cancelled, non-renewed, or if they are receiving significant premium increase. The bill also requires insurance companies to provide the Ohio Department of Insurance with adequate notice if they significantly change their market presence in Ohio, or plan to discontinue writing medical policies in the state.
By requiring a 60-day notice, this bill will provide physicians more time to make other insurance arrangements so they can continue to practice and provide access to care for their patients. AMC/NOMA supports this bill and we will push for passage in the Ohio House.
Specifically the bill states that:
An insurer that intends to cancel, terminate, or otherwise not renew a policy of medical malpractice insurance that it has issued to any class, type, or specialty of practitioner, or that intends to cancel, terminate, or otherwise not renew all policies in a specific geographic area, which may include the state as a whole, is to file written notice of its intended action with the Superintendent of the Ohio Department of Insurance. Such actions by an insurer are not effective unless the written notice is filed with the Superintendent within the following time frames:
Written notice is also to be filed with the Superintendent at least 120 days prior to the insurer making changes in its underwriting guidelines, if the effect of the changes will be to cancel, terminate, or otherwise not renew all policies of medical malpractice insurance for a specific class, type, or specialty of practitioner or in a specific geographic area other than Ohio as a whole.
An insurer that intends to condition renewal of a medical malpractice insurance policy upon an increase in premium is to mail a notice of the insurer's intention to the agent of record and to the insured at the insured's last known address at least 60 days prior to the expiration date of the policy.
An insurer may refuse to renew a policy of medical malpractice insurance by mailing a notice of the insurer's intention to the agent of record and to the insured at the insured's last known address at least 60 days prior to the expiration date of the policy. If the notice is mailed less than 60 days before the expiration date of the policy, the insured's coverage then in effect remains in effect until 60 days after the date of mailing the notice unless either of the following is true:
If the insured's coverage is extended beyond the original expiration date of the policy, the premium for the time after the original expiration date must be calculated using the rates originally applicable to the insured's coverage then in effect. The insurer is to notify the insured of the amount of the premium for the time after the expiration of the insured's coverage then in effect. The insured is to pay the premium unless either of the following is true: