Enrolled Bill Summary

Senate Bill 421 amends the Insurance Code to provide for the eligibility of assisted living facilities for coverage under the Texas Medical Liability Insurance Underwriting Association. The bill authorizes the commissioner of insurance to designate types of health care providers to be eligible for coverage on the determination that other appropriate liability insurance coverage is not available and provides for the establishment of a separate policyholder's stabilization reserve fund. The bill deletes a provision authorizing the commissioner to direct the initiation or continuation of the stabilization reserve fund charge for physicians or that category of health care provider if certain losses and expenses result in a net underwriting loss and exceed 25 percent of the fund. The bill also includes a provision limiting the liability of the association for exemplary damages under a policy for an assisted living facility; the provision applies only to claims after September 1, 2003, and before January 1, 2006.