N.J. Admin. Code § 13:35-2B.17

Current through Register Vol. 56, No. 24, December 18, 2024

Section 13:35-2B.17 - Medical malpractice coverage; letter of credit

(a) The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:

"Authorized" means recognized by a governmental agency to offer medical malpractice insurance products.

"Covered" means ongoing maintenance of insurance in the sum of $ 1 million per occurrence and $ 3 million dollars per policy year, with extended reporting endorsement coverage for claims made (tail coverage) issued by a carrier or other entity authorized to write medical malpractice policies.

"Letter of credit" means a non-assignable, non-transferable, unexpired, continuous irrevocable obligation, liability bond, or other instrument issued by a bank or saving association authorized to do business in this State, payable to the physician assistant as the beneficiary within 30 days after a demand for payment and the presentation of a final judgment or settlement in a medical malpractice action.

"Not available" means that a physician assistant is unable to purchase medical malpractice insurance coverage from a carrier authorized to write medical malpractice insurance, including through programs relating to risk retention groups deemed eligible by the Department of Banking and Insurance, surplus lines registered with the Department of Banking and Insurance, self-insurance trusts, or captive insurance companies approved by the New Jersey Health Care Facilities Financing Authority in the Department of Health. "Not available" for purposes of this section does not mean "not affordable."

(b) A physician assistant licensed to practice in this State who engages in clinical practice shall be covered by medical malpractice liability insurance or, if medical malpractice liability insurance is not available, shall secure and maintain a letter of credit in the sum of at least $ 500,000 or more.

(c) A physician assistant who is not covered by medical malpractice insurance shall present to the Board a true copy of the letter of credit required pursuant to (b) above and shall notify the Board, within seven days, whenever:

1. A demand for payment on the letter has been made; or

2. The continuing viability of the letter has been affected, for whatever reason.

(d) A physician assistant who practices in violation of this rule shall be deemed to have engaged in professional misconduct within the meaning of N.J.S.A. 45:1-21.e and shall be subject to disciplinary action and civil penalties pursuant to N.J.S.A. 45:1 -21, 45:1 -22, and 45:1-25.

N.J. Admin. Code § 13:35-2B.17

Adopted by 50 N.J.R. 1368(a), effective 6/4/2018