§4023 Professional Liability Protection

Summary

Lets eligible servicemembers who are ordered to active duty after July 31, 1990 (under 10 U.S.C. sections 688, 12301(a), 12301(g), 12302, 12304, 12306, 12307, or 12301(d) when others are on those orders) suspend their professional liability insurance if, right before the order, they were doing health-care, legal, or other professional work and had a policy that would not cover claims while they were on active duty unless premiums were paid. The servicemember must ask the insurer in writing to suspend the coverage. While suspended, the insurer cannot charge or keep premiums for that suspended period and must refund amounts paid or apply them to any premium when the policy is restarted. The insurer is not responsible for claims based on acts that happen during the suspension, except some claims about failing to arrange care are treated as happening before suspension unless professional services were actually given after the suspension began. When the servicemember returns, the insurer must reinstate the coverage if the servicemember sends a written request within 30 days after release from active duty. The insurer will tell the servicemember when the premium is due, and the premium must be paid within 30 days of that notice. Reinstated coverage must last at least for the remaining time the original policy would have run. The insurer may not raise the premium for that minimum reinstated period above what it charged before suspension, except for general premium increases that affected similar policyholders. The law does not force suspension for other people who share the same policy, and those people must still pay their premiums. Any civil or administrative suit that started during the suspension and is based on acts before suspension that would have been covered is put on hold until the suspension ends; the suit is treated as filed on the date the coverage is reinstated. Time limits for filing are paused during the suspension. If a suspended servicemember dies while coverage is suspended, the stay ends at death and the insurer is still liable for claims as if the person had died while covered. “Active duty,” “profession,” and “professional” use the meanings in the law (active duty per 10 U.S.C. 101(d)(1); profession/professional include occupation).