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20-1721. Health care insurers; policy limits; eligibility; rates; applicability to other insurers; restrictions

A. Any person, pursuant to this article and to the otherwise applicable provisions of title 20, to the extent that such other provisions are not inconsistent with this article, may establish a domestic stock insurance company, a domestic mutual insurance company or a reciprocal insurer, to issue professional liability and related casualty insurance to any licensed health care provider holding a valid, nonsuspended license or permit issued by this state.

B. Until October 1, 1980, the following provisions shall apply to the offering of primary coverage professional liability insurance by health care insurers:

1. Primary coverage shall be made available by such insurers to every licensed health care provider currently holding a nonsuspended permit or license issued by this state and providing health care services in this state.

2. A health care insurer may reduce the scope of its insurance coverage for any insured who has his license or permit restricted by his licensing agency or board in accordance with such restriction, or may terminate coverage if such insured has his license or permit suspended or revoked.

3. The rates for such coverage shall reflect past and prospective loss and expense experience relating to that type of licensed health care provider and reasonably recognized prior claims experience of the insured and shall be applied on the basis of standard underwriting practices in the insurance industry.

4. The rates for such coverage may include assessments and surcharges for negative underwriting experience.

C. On or after October 1, 1980, health care insurers shall not be subject to the provisions contained in subsection B, but shall offer coverage as otherwise provided by this title.

D. Coverage exceeding the limits of primary coverage may be made available by health care insurers to licensed health care providers satisfying the insurer's underwriting policies which may be established from time to time.