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


Office of House Bill AnalysisH.B. 1354
By: Hartnett
Insurance
3/9/1999
Introduced



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 the 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.

H.B. 1354 requires the board of directors of 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 board of directors of the joint
underwriting association (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 act, ruling, or decision. 

(b) Adds a provision requiring the board of directors of the 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 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.