39-7-118 - Professional liability protection for certain persons ordered to active duty in the armed forces.
39-7-118. Professional liability protection for certain persons ordered to activeduty in the armed forces.
(1) This section applies to a person who:
(a) is ordered to military service, other than training; and
(b) immediately before receiving the order to military service:
(i) was engaged in the furnishing of health-care services or other services determined byrule to be professional services; and
(ii) had in effect a professional liability insurance policy that does not continue to coverclaims filed with respect to the service member during the period of the service member's activeduty unless the premiums are paid for coverage for that period.
(2) Coverage of a person referred to in Subsection (1) by a professional liability insurancepolicy shall be suspended by the insurance carrier in accordance with Subsection (3) upon receiptof a written request by the service member.
(3) A professional liability insurance carrier:
(a) may not require that premiums be paid by or on behalf of a service member for anyprofessional liability insurance coverage suspended pursuant to Subsection (2); and
(b) shall refund any amount paid for coverage for the period of the suspension or, uponthe election of the service member, apply the amount for the payment of any premium becomingdue upon the reinstatement of the coverage.
(4) A professional liability insurance carrier is not liable with respect to any claim that isbased on professional conduct, including any failure to take any action in a professional capacityof a person that occurs during a period of suspension of that person's professional liabilityinsurance under this section. For the purposes of the preceding sentence, a claim based upon thefailure of a professional to make adequate provision for patients to be cared for during the periodof the professional's military service is considered an action or failure to take action before thebeginning of the period of suspension of professional liability insurance under this section, exceptin a case in which professional services were provided after the date of the beginning of theperiod.
(5) (a) Professional liability insurance coverage suspended in the case of any servicemember pursuant to Subsection (2) shall be reinstated by the insurance carrier on the date onwhich the service member transmits to the insurance carrier a written request for reinstatement.
(b) The request of a service member for reinstatement shall be effective only if the servicemember transmits the request to the insurance carrier within 30 days after the date on which theservice member's military service is terminated. The insurance carrier shall notify the person ofthe due date for payment of the insurance premium. The premium shall be paid by the personwithin 30 days after receipt of the notice.
(6) The period for which professional liability insurance coverage shall be reinstated for aservice member under this section may not be less than the balance of the period for whichcoverage would have continued under the policy if the coverage had not been suspended.
(7) An insurance carrier may not increase the amount of the premium charged forprofessional liability insurance coverage of any service member for the minimum period of thereinstatement of coverage required under Subsection (5) to an amount greater than the amountchargeable for the coverage for the period before the suspension, except to the extent of anygeneral increase in the premium amounts charged by that carrier for the same professionalliability coverage for other persons similarly covered by the same insurance during the period of
the suspension.
(8) This section does not:
(a) require a suspension of professional liability insurance coverage for any person who isnot a person referred to in Subsection (1) and who is covered by the same professional liabilityinsurance as a person referred to in Subsection (1); or
(b) relieve any person of the obligation to pay premiums for the coverage not required tobe suspended.
(9) A civil or administrative action for damages on the basis of the alleged professionalnegligence or other professional liability of a person whose professional liability insurancecoverage has been suspended under Subsection (2) shall be stayed until the end of the period ofthe suspension if:
(a) the action was commenced during the period or suspension;
(b) the action is based on an act or omission that occurred before the date on which thesuspension became effective; and
(c) the suspended professional liability insurance would, except for the suspension, on itsface cover the alleged professional negligence or other professional liability negligence or otherprofessional liability of the person.
Enacted by Chapter 306, 1997 General Session