HOUSE BILL NO. 2071 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE PHELPS.
4823H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal section 383.155, RSMo, and to enact in lieu thereof one new section relating to the medical malpractice joint underwriting association.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 383.155, RSMo, is repealed and one new section enacted in lieu 2 thereof, to be known as section 383.155, to read as follows: 383.155. 1. A joint underwriting association may be created, or directed to resume 2 operations, upon determination by the director after a public hearing that medical 3 malpractice liability insurance is not reasonably available for health care providers in the 4 voluntary market. The association shall contain as members all companies authorized to 5 write and engaged in writing, on a direct basis, any insurance or benefit, the premium for 6 which is included under the definition of "net direct premiums". Membership in the 7 association shall be a condition of continued authority to do business in this state. 8 2. A plan of operation shall be adopted to be effective concurrently with the effective 9 date of the association. 10 3. The association shall, pursuant to the provisions of sections 383.150 to 383.195 11 and the plan of operation, with respect to medical malpractice insurance, have the authority 12 on behalf of its members: 13 (1) To issue, or to cause to be issued, policies of insurance to applicants, including 14 incidental coverages and subject to limits as specified in the plan of operation but not to 15 exceed one million dollars for each claimant under one policy and three million dollars for all 16 claimants under one policy in any one policy year;
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 2071 2
17 (2) To underwrite such insurance and to adjust and pay losses with respect thereto, or 18 to appoint a service company to perform those functions; 19 (3) To assume reinsurance from its members; and 20 (4) To cede reinsurance. 21 4. Within forty-five days following the creation of the association, the directors of the 22 association shall submit to the director for his or her review, a proposed plan of operation, 23 consistent with the provisions of sections 383.150 to 383.195. 24 5. The plan of operation shall provide for economic, fair and nondiscriminatory 25 administration and for the prompt and efficient distribution of medical malpractice insurance, 26 and shall contain other provisions including, but not limited to, preliminary assessment of all 27 members for initial expenses to commence operations, establishment of necessary facilities, 28 management of the association, assessment of members to defray losses and expenses, 29 reasonable and objective underwriting standards, acceptance and cession of reinsurance, 30 appointment of a servicing company and procedures for determining amounts of insurance to 31 be provided by the association. The preliminary assessment shall be an advance to be 32 recouped under the provisions of subsection 5 of section 383.160. 33 6. The composition of the board and the terms of directors of the board shall be 34 established by the plan of operation. 35 7. The plan of operation shall be subject to approval by the director after consultation 36 with the members of the association, representatives of the public and other affected 37 individuals and organizations. If the director disapproves all or any part of the proposed plan 38 of operation, the directors shall within fifteen days submit for review a revised plan of 39 operation. If the directors fail to do so, the director shall promulgate a plan of operation or 40 part thereof, as the case may be. The plan of operation approved or promulgated by the 41 director shall become effective and operational upon his or her order. 42 8. Amendments to the plan of operation may be made by the directors of the 43 association, subject to the approval of the director or shall be made at his direction. 44 9. There shall be no liability imposed on the part of and no cause of action of any 45 nature shall arise against any member insurer or any member of the board of directors for any 46 omission or action taken by them in the performance of their powers and duties under sections 47 383.150 to 383.195. 48 10. (1) A majority of the directors of the board may suspend the operations of 49 an association created under this section if the board of directors determine that 50 medical malpractice insurance is reasonably available to health care providers in the 51 voluntary market and there are two or fewer individual physicians insured annually by 52 the association for at least two consecutive years. HB 2071 3
53 (2) Suspension of operations of the association shall be in accordance with the 54 association's plan of operation, or any amendment thereto. The association's plan of 55 operation shall establish the process for suspension of operations and include provisions 56 for the administration of association funds until the director determines either to 57 resume operations under subsection 1 of this section or to terminate operations in 58 compliance with section 383.195. 59 (3) During any period of suspension, the association shall not collect dues or fees 60 from its members unless and until the director authorizes an assessment or authorizes 61 the resumption of operations under this section. 62 11. As used in this section, "reasonably available" shall mean that medical 63 malpractice insurance products are offered to health care providers in the voluntary 64 market by insurance carriers in the ordinary course of business. ✔
Statutes affected: