50 USC 4023 - Professional liability protection

U.S Code last checked for updates: Nov 22, 2024

§ 4023.

Professional liability protection

(a)

Applicability

This section applies to a servicemember who—

(1)

after July 31, 1990, is ordered to active duty (other than for training) pursuant to sections 688, 12301(a), 12301(g), 12302, 12304, 12306, or 12307 of title 10 or who is ordered to active duty under section 12301(d) of such title during a period when members are on active duty pursuant to any of the preceding sections; and

(2)

immediately before receiving the order to active duty—

(A)

was engaged in the furnishing of health-care or legal services or other services determined by the Secretary of Defense to be professional services; and

(B)

had in effect a professional liability insurance policy that does not continue to cover claims filed with respect to the servicemember during the period of the servicemember’s active duty unless the premiums are paid for such coverage for such period.

(b)

Suspension of coverage

(1)

Suspension

(2)

Premiums for suspended contracts

A professional liability insurance carrier—

(A)

may not require that premiums be paid by or on behalf of a servicemember for any professional liability insurance coverage suspended pursuant to paragraph (1); and

(B)

shall refund any amount paid for coverage for the period of such suspension or, upon the election of such servicemember, apply such amount for the payment of any premium becoming due upon the reinstatement of such coverage.

(3)

Nonliability of carrier during suspension

(4)

Certain claims considered to arise before suspension

(c)

Reinstatement of coverage

(1)

Reinstatement required

(2)

Time and premium for reinstatement

(3)

Period of reinstated coverage

(d)

Increase in premium

(1)

Limitation on premium increases

(2)

Exception

(e)

Continuation of coverage of unaffected persons

This section does not—

(1)

require a suspension of professional liability insurance protection for any person who is not a person referred to in subsection (a) and who is covered by the same professional liability insurance as a person referred to in such subsection; or

(2)

relieve any person of the obligation to pay premiums for the coverage not required to be suspended.

(f)

Stay of civil or administrative actions

(1)

Stay of actions

A civil or administrative action for damages on the basis of the alleged professional negligence or other professional liability of a servicemember whose professional liability insurance coverage has been suspended under subsection (b) shall be stayed until the end of the period of the suspension if—

(A)

the action was commenced during the period of the suspension;

(B)

the action is based on an act or omission that occurred before the date on which the suspension became effective; and

(C)

the suspended professional liability insurance would, except for the suspension, on its face cover the alleged professional negligence or other professional liability negligence or other professional liability of the servicemember.

(2)

Date of commencement of action

(g)

Effect of suspension upon limitations period

(h)

Death during period of suspension

If a servicemember whose professional liability insurance coverage is suspended under subsection (b) dies during the period of the suspension—

(1)

the requirement for the grant or continuance of a stay in any civil or administrative action against such servicemember under subsection (f)(1) shall terminate on the date of the death of such servicemember; and

(2)

the carrier of the professional liability insurance so suspended shall be liable for any claim for damages for professional negligence or other professional liability of the deceased servicemember in the same manner and to the same extent as such carrier would be liable if the servicemember had died while covered by such insurance but before the claim was filed.

(i)

Definitions

For purposes of this section:

(1)

Active duty

(2)

Profession

(3)

Professional

(Oct. 17, 1940, ch. 888, title VII, § 703, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2862.)

cite as: 50 USC 4023