74R8581 MWV-D
          By Smithee                                             H.B. No. 771
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to certain nursing homes for purposes of professional
    1-3  liability insurance coverage.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 8, Article 5.15-1, Insurance Code, is
    1-6  amended to read as follows:
    1-7        Sec. 8.  Punitive damages under medical professional
    1-8  liability insurance.  No policy of medical professional liability
    1-9  insurance issued to or renewed for a health care provider or
   1-10  physician in this state may include coverage for punitive damages
   1-11  that may be assessed against the health care provider or physician;
   1-12  provided, however, that the board may approve an endorsement form
   1-13  that provides for coverage for punitive damages to be used on a
   1-14  policy of medical professional liability insurance issued to a
   1-15  hospital, as the term "hospital" is defined in this article, or to
   1-16  a not-for-profit nursing home.
   1-17        SECTION 2.  This Act takes effect September 1, 1995, and
   1-18  applies only to an insurance policy that is delivered, issued for
   1-19  delivery, or renewed on or after January 1, 1996.  A policy that is
   1-20  delivered, issued for delivery, or renewed before January 1, 1996,
   1-21  is governed by the law as it existed immediately before the
   1-22  effective date of this Act, and that law is continued in effect for
   1-23  that purpose.
   1-24        SECTION 3.  The importance of this legislation and the
    2-1  crowded condition of the calendars in both houses create an
    2-2  emergency and an imperative public necessity that the
    2-3  constitutional rule requiring bills to be read on three several
    2-4  days in each house be suspended, and this rule is hereby suspended.