SENATE, No. 267

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Senators SINAGRA and ADLER

An Act concerning the practice of medicine and surgery and supplementing Chapter 9 of 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 who maintains a professional medical practice in this State and has responsibility for patient care 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 carrier 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 a line of credit that is 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. This act shall take effect on the 60th day after enactment.

STATEMENT

    This bill requires all physicians who maintain a professional medical practice in the State and have responsibility for patient care to be covered by medical malpractice insurance or, if coverage is not available, a letter of credit for at least a minimum amount as specified by the State Board of Medical Examiners.

    This requirement is intended to ensure the citizens of the State that they will have some recourse for adequate compensation in the event that a physician is found responsible for acts of malpractice.

    The bill requires the State Board of Medical Examiners to notify all State licensed physicians of the requirements of this bill within 30 days of the date of enactment of the bill.

Requires certain physicians to obtain medical malpractice insurance or letter of credit.