Enrolled Bill Summary

Senate Bill 339 amends the Insurance Code to allow the Medical Liability Insurance Underwriting Association to offer physicians and health care providers short-term medical liability insurance policies for a term of less than one year and also to offer policyholders the option of paying premiums on an installment basis, rather than offering only annual policies with premiums paid in a lump sum as provided by prior law. The bill exempts these short-term policies of less than one year from the requirement for the association to notify policyholders 90 days in advance of any increase, cancellation, or nonrenewal of coverage. If the association chooses to allow an installment plan for paying insurance premiums, the bill authorizes the association either to permit policyholders to pay charges to its stabilization reserve funds in installments or to require an annual lump-sum payment.