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(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, United States Code, 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- Coverage of a servicemember referred to in subsection
(a) by a professional liability insurance policy shall be suspended by
the insurance carrier in accordance with this subsection upon receipt
of a written request from the servicemember by the insurance carrier.
(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- A professional liability
insurance carrier shall not be liable with respect to any claim that
is based on professional conduct (including any failure to take any action
in a professional capacity) of a servicemember that occurs during a period
of suspension of that servicemember's professional liability insurance
under this subsection.
(4) CERTAIN CLAIMS CONSIDERED TO ARISE BEFORE SUSPENSION- For the purposes
of paragraph (3), a claim based upon the failure of a professional to
make adequate provision for a patient, client, or other person to receive
professional services or other assistance during the period of the professional's
active duty service shall be considered to be based on an action or failure
to take action before the beginning of the period of the suspension of
professional liability insurance under this subsection, except in a case
in which professional services were provided after the date of the beginning
of such period.
(c) REINSTATEMENT OF COVERAGE-
(1) REINSTATEMENT REQUIRED- Professional liability insurance coverage
suspended in the case of any servicemember pursuant to subsection (b)
shall be reinstated by the insurance carrier on the date on which that
servicemember transmits to the insurance carrier a written request for
reinstatement.
(2) TIME AND PREMIUM FOR REINSTATEMENT- The request of a servicemember
for reinstatement shall be effective only if the servicemember transmits
the request to the insurance carrier within 30 days after the date on
which the servicemember is released from active duty. The insurance carrier
shall notify the servicemember of the due date for payment of the premium
of such insurance. Such premium shall be paid by the servicemember within
30 days after receipt of that notice.
(3) PERIOD OF REINSTATED COVERAGE- The period for which professional
liability insurance coverage shall be reinstated for a servicemember
under this subsection may not be less than the balance of the period
for which coverage would have continued under the insurance policy if
the coverage had not been suspended.
(d) INCREASE IN PREMIUM-
(1) LIMITATION ON PREMIUM INCREASES- An insurance carrier may not increase
the amount of the premium charged for professional liability insurance
coverage of any servicemember for the minimum period of the reinstatement
of such coverage required under subsection (c)(3) to an amount greater
than the amount chargeable for such coverage for such period before the
suspension.
(2) EXCEPTION- Paragraph (1) does not prevent an increase in premium
to the extent of any general increase in the premiums charged by that
carrier for the same professional liability coverage for persons similarly
covered by such insurance during the period of the suspension.
(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- Whenever a civil or administrative
action for damages is stayed under paragraph (1) in the case of any servicemember,
the action shall have been deemed to have been filed on the date on which
the professional liability insurance coverage of the servicemember is
reinstated under subsection (c).
(g) EFFECT OF SUSPENSION UPON LIMITATIONS PERIOD- In the case of a
civil or administrative action for which a stay could have been granted
under subsection (f) by reason of the suspension of professional liability
insurance coverage of the defendant under this section, the period of
the suspension of the coverage shall be excluded from the computation
of any statutory period of limitation on the commencement of such action.
(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- The term `active duty' has the meaning given that
term in section
101(d)(1) of title 10, United States Code.
(2) PROFESSION- The term `profession' includes occupation.
(3) PROFESSIONAL- The term `professional' includes occupational.
Next page > Section
704 - Health
insurance reinstatement
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