SRC-JJJ H.B. 1354 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1354
By: Hartnett (Carona)
Economic Development
5/10/1999
Engrossed


DIGEST 

The Texas Medical Liability Insurance Underwriting Association
(association) provides professional liability insurance to Texas health
care providers.  Presently, a health care provider aggrieved by an act,
ruling, or decision of the association has the right to appeal to the
association's board of directors (board) within 30 days of the act, ruling,
or decision.  After a hearing, the board issues a final decision.  If the
appeal fails, the insured may appeal further to the commissioner of
insurance.  The law does not require the board to give notice of the
insured's right to appeal within the prescribed period, although it does
require the board to give at least 10 days written notice of the time and
place of a hearing to a person requesting one.  Health care providers who
are not aware that they have 30 days to appeal the board's decision may
forfeit their right to appeal because failure to appeal within the period
allotted bars the claim.  H.B. 1354 would require notice of certain appeal
rights to a person insured or applying for medical liability insurance
provided through the association.   
   
PURPOSE

As proposed, H.B. 1354 requires the Texas Medical Liability Insurance
Underwriting Association to provide notice of certain appeal rights to a
person insured or applying for medical liability insurance. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 7, Article 21.49-3, Insurance Code, to provide
that at the time a person is notified of certain aspects of an act, ruling,
or decision of the Texas Medical Liability Insurance Underwriting
Association (association), association, shall provide to the person written
notice of the person's right to appeal under this subsection.  requires the
Commissioner of Insurance to provide to the person written notice of the
person's  right to appeal, at the time the person is notified of the
decision of the commissioner.  Makes conforming changes.   

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.