RS H.B. 1170 75(R)BILL ANALYSIS INSURANCE H.B. 1170 By: Smithee 3-17-97 Committee Report (Amended) BACKGROUND Currently the Texas Insurance Code prohibits not-for-profit nursing homes from purchasing punitive damage insurance coverage under medical professional liability insurance from an admitted carrier. Not-for-profits may purchase such insurance from non-admitted, out-of-state carriers, but these policies would not include oversight and protections under the Texas Department of Insurance. The current law reflects a time when the not-for-profits were less concerned about litigation than today. PURPOSE As proposed, H.B. 1170 would include a not-for-profit nursing home under the definition of a hospital as described in Section 8, Article 5.15-1, Insurance Code. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. - Amends Section 8 of Article 5.15-1, Insurance Code, to read as follows: (8) PUNITIVE DAMAGES UNDER MEDICAL PROFESSIONAL LIABILITY INSURANCE Defines term "hospital" as definition mentioned previously in article. Adds "not-for-profit nursing home" to definition of what may receive an endorsement form for insurance coverage for punitive damages on a policy of medical liability insurance. SECTION 2. - Effective Date, September 1, 1997, and applies to policies enacted or renewed after January 1, 1998. SECTION 3. - Emergency Clause. EXPLANATION OF AMENDMENTS Committee Amendment 1. - by Lewis, Glenn Updates language in bill to reflect "commissioner" instead of