ASSEMBLY, No. 1595

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 29, 1996

By Assemblywoman VANDERVALK

An Act concerning malpractice insurance requirements for certain professionals and supplementing Title 45 of the Revised Statutes.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. a. A physician is required to be covered by medical malpractice liability insurance, or if such liability coverage is not available by a letter of credit, for at least the minimum amount required by the State Board of Medical Examiners.

    The physician shall notify the State Board of Medical Examiners of the name and address of the insurance company or the institution issuing the letter of credit, pursuant to section 7 of P.L.1989, c.300 (C.45:9-19.7).

    b. A physician who is in violation of this section is subject to disciplinary action and civil penalties pursuant to sections 8, 9 and 12 of P.L.1978, c.73 (C.45:1-21 to 22 and 45:1-25).

    c. The State Board of Medical Examiners shall, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt regulations which establish the minimum amount of the medical malpractice liability insurance or letter of credit required pursuant to this section.

    d. The State Board of Medical Examiners shall notify all physicians licensed by the board of the requirements of this section within 30 days of the date of enactment of this act.

    2. a. Any person certified or registered to practice certified public accounting or public accounting in this State is required to be covered by malpractice liability insurance from an insurance company authorized and licensed to do business in this State, or if such liability coverage is not available by a letter of credit, for at least the minimum amount required by the New Jersey State Board of Accountancy.

    The accountant shall notify the New Jersey State Board of Accountancy of the name and address of the insurance company or the institution issuing the letter of credit, pursuant to section 17 of P.L.1977, c.144 (C.45:2B-17).

    b. An accountant who is in violation of this section is subject to disciplinary action and civil penalties pursuant to sections 8, 9 and 12 of P.L.1978, c.73 (C.45:1-21 to 22 and 45:1-25).

    c. The New Jersey State Board of Accountancy shall, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt regulations which establish the minimum amount of the malpractice liability insurance or letter of credit required pursuant to this section.

    d. The New Jersey State Board of Accountancy shall notify all accountants certified or registered by the board of the requirements of this section within 30 days of the date of enactment of this act.

    3. a. Any person licensed to practice architecture in this State is required to be covered by malpractice liability insurance from an insurance company authorized and licensed to do business in this State, or if such liability coverage is not available by a letter of credit, for at least the minimum amount required by the New Jersey State Board of Architects.

    The architect shall notify the New Jersey State Board of Architects of the name and address of the insurance company or the institution issuing the letter of credit, pursuant to R.S.45:3-3.

    b. An architect who is in violation of this section is subject to disciplinary action and civil penalties pursuant to sections 8, 9 and 12 of P.L.1978, c.73 (C.45:1-21 to 22 and 45:1-25).

    c. The New Jersey State Board of Architects shall, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt regulations which establish the minimum amount of the malpractice liability insurance or letter of credit required pursuant to this section.

    d. The New Jersey State Board of Architects shall notify all architects licensed by the board of the requirements of this section within 30 days of the date of enactment of this act.

    4. a. Any person licensed to practice dentistry in this State is required to be covered by malpractice liability insurance from an insurance company authorized and licensed to do business in this State, or if such liability coverage is not available by a letter of credit, for at least the minimum amount required by the New Jersey State Board of Dentistry.

    The dentist shall notify the New Jersey State Board of Dentistry of the name and address of the insurance company or the institution issuing the letter of credit, pursuant to R.S.45:6-10.

    b. A dentist who is in violation of this section is subject to disciplinary action and civil penalties pursuant to sections 8, 9 and 12 of P.L.1978, c.73 (C.45:1-21 to 22 and 45:1-25).

    c. The New Jersey State Board of Dentistry shall, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt regulations which establish the minimum amount of the malpractice liability insurance or letter of credit required pursuant to this section.

    d. The New Jersey State Board of Dentistry shall notify all dentists licensed by the board of the requirements of this section within 30 days of the date of enactment of this act.

    5. a. Any person licensed to practice professional engineering in this State is required to be covered by malpractice liability insurance from an insurance company authorized and licensed to do business in this State, or if such liability coverage is not available by a letter of credit, for at least the minimum amount required by the State Board of Professional Engineers and Land Surveyors.

    The professional engineer shall notify the State Board of Professional Engineers and Land Surveyors of the name and address of the insurance company or the institution issuing the letter of credit, pursuant to section 11 of P.L.1938, c.342 (C.45:8-37).

    b. An engineer who is in violation of this section is subject to disciplinary action and civil penalties pursuant to sections 8, 9 and 12 of P.L.1978, c.73 (C.45:1-21 to 22 and 45:1-25).

    c. The State Board of Professional Engineers and Land Surveyors shall, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt regulations which establish the minimum amount of the malpractice liability insurance or letter of credit required pursuant to this section.

    d. The State Board of Professional Engineers and Land Surveyors shall notify all professional engineers licensed by the board of the requirements of this section within 30 days of the date of enactment of this act.

    6. a Any person licensed to practice podiatry in this State is required to be covered by malpractice liability insurance from an insurance company authorized and licensed to do business in this State, or if such liability coverage is not available by a letter of credit, for at least the minimum amount required by the State Board of Medical Examiners.

    The podiatrist shall notify the State Board of Medical Examiners of the name and address of the insurance company or the institution issuing the letter of credit, pursuant to R.S.45:5-9.

    b. A podiatrist who is in violation of this section is subject to disciplinary action and civil penalties pursuant to sections 8, 9 and 12 of P.L.1978, c.73 (C.45:1-21 to 22 and 45:1-25).

    c. The State Board of Medical Examiners shall, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt regulations which establish the minimum amount of the malpractice liability insurance or letter of credit required pursuant to this section.

    d. The State Board of Medical Examiners shall notify all podiatrists licensed by the board of the requirements of this section within 30 days of the date of enactment of this act.

    7. a. Any person licensed to practice chiropractic in this State is required to be covered by malpractice liability insurance from an insurance company authorized and licensed to do business in this State, or if such liability coverage is not available by a letter of credit, for at least the minimum amount required by the State Board of Chiropractic Examiners.

    The chiropractor shall notify the State Board of Chiropractic Examiners of the name and address of the insurance company or the institution issuing the letter of credit, pursuant to section 14 of P.L.1953, c.233 (C.45:9-41.11).

    b. A chiropractor who is in violation of this section is subject to disciplinary action and civil penalties pursuant to sections 8, 9 and 12 of P.L.1978, c.73 (C.45:1-21 to 22 and 45:1-25).

    c. The State Board of Chiropractic Examiners shall, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt regulations which establish the minimum amount of the malpractice liability insurance or letter of credit required pursuant to this section.

    d. The State Board of Chiropractic Examiners shall notify all chiropractors licensed by the board of the requirements of this section within 30 days of the date of enactment of this act.

    8. a. Any person licensed to practice nursing as a registered professional nurse in this State is required to be covered by malpractice liability insurance from an insurance company authorized and licensed to do business in this State, or if such liability coverage is not available by a letter of credit, for at least the minimum amount required by the New Jersey Board of Nursing.

    The registered professional nurse shall notify the New Jersey Board of Nursing of the name and address of the insurance company or the institution issuing the letter of credit, pursuant to section 12 of P.L.1947, c.262 (C.45:11-34).

    b. A registered professional nurse who is in violation of this section is subject to disciplinary action and civil penalties pursuant to sections 8, 9 and 12 of P.L.1978, c.73 (C.45:1-21 to 22 and 45:1-25).

    c. The New Jersey Board of Nursing shall, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt regulations which establish the minimum amount of the malpractice liability insurance or letter of credit required pursuant to this section.

    d. The New Jersey Board of Nursing shall notify all registered professional nurses licensed by the board of the requirements of this section within 30 days of the date of enactment of this act.

    9. This act shall take effect on the 180th day after enactment.

STATEMENT

    This bill requires various professionals to be covered by malpractice insurance or, if coverage is not available a letter of credit, for at least a minimum amount as specified by the particular board by which they are regulated. The professions provided for in the bill include accountants, architects, dentists, engineers, physicians, podiatrists, chiropractors, and registered professional nurses.

    The bill is intended to ensure the citizens of the State that they will

have some recourse for adequate compensation in the event that persons engaged in the professions enumerated in this bill are found responsible for acts of malpractice.

Requires various professionals to obtain malpractice insurance or letter of credit.