HBA-ATS C.S.H.B. 1354 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 1354
By: Hartnett
Insurance
4/8/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The Texas Medical Liability Insurance Underwriting Association (also known
as the Joint Underwriting Association or JUA) provides professional
liability insurance to Texas health care providers.  Presently, a health
care provider aggrieved by an act, ruling, or decision of JUA has the right
to appeal to the JUA's board of directors within 30 days of the act,
ruling, or decision.  After the hearing, the board of directors issues a
final decision.  If that appeal fails, the insured may appeal further to
the commissioner of insurance.  The law does not require the board of
directors to give notice of the insured's right to appeal within the
prescribed period, although it does require the board of directors 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.

C.S.H.B. 1354 requires the joint underwriting association to provide to a
person written notice of the person's right to appeal at the time the
person is notified of the association's initial act, ruling, or decision,
and at the time the person is notified of the association's final decision.
This bill also requires the commissioner of insurance (commissioner) to
provide to a person written notice of the person's right to appeal at the
time the person is notified of the commissioner's final decision. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 7, Article 21.49-3, Insurance Code, as follows:

(a) Adds a provision requiring the joint underwriting association (JUA) to
provide to a person written notice of the person's right to appeal at the
time the person is notified of JUA's act, ruling, or decision. 

(b) Adds a provision requiring JUA to provide to a person written notice of
the person's right to appeal at the time the person is notified of JUA's
final decision. 

(c) Redesignates existing Subsection (b) to this subsection.

(d) Adds a provision requiring the commissioner of insurance (commissioner)
to provide to a person written notice of the person's right to appeal at
the time the person is notified of the commissioner's final decision. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.



 COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1354 modifies the original bill in SECTION 1 by changing the
proposed modification of existing Subsections (a) and (b), Section 7,
Article 21.49-3, Insurance Code, to require JUA, rather than the board of
directors of JUA, to provide to a person written notice of the person's
right to appeal at the time the person is notified of JUA's act, ruling, or
decision, including the final decision.