1-1 By: Hartnett (Senate Sponsor - Carona) H.B. No. 1354
1-2 (In the Senate - Received from the House April 26, 1999;
1-3 April 27, 1999, read first time and referred to Committee on
1-4 Economic Development; May 13, 1999, reported favorably by the
1-5 following vote: Yeas 7, Nays 0; May 13, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to requiring notice of certain appeal rights to a person
1-9 insured or applying for medical liability insurance provided
1-10 through a joint underwriting association.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 7, Article 21.49-3, Insurance Code, is
1-13 amended to read as follows:
1-14 Sec. 7. APPEALS. (a) Any person insured or applying for
1-15 insurance pursuant to this Act, or his duly authorized
1-16 representative, or any affected insurer who may be aggrieved by an
1-17 act, ruling, or decision of the association, may, within 30 days
1-18 after such act, ruling, or decision, appeal to the board of
1-19 directors of the association. At the time the person is notified
1-20 of the act, ruling, or decision of the association, the association
1-21 shall provide to the person written notice of the person's right to
1-22 appeal under this subsection.
1-23 (b) The board of directors of the association shall hear
1-24 said appeal within 30 days after receipt of such request or appeal
1-25 and shall give not less than 10 days' written notice of the time
1-26 and place of hearing to the person making such request or the duly
1-27 authorized representative. Within 10 days after such hearing, the
1-28 board of directors of the association shall affirm, reverse, or
1-29 modify its previous action or the act, ruling, or decision appealed
1-30 to the board of directors of the association. At the time the
1-31 person is notified of the final action of the board of directors of
1-32 the association, the association shall provide to the person
1-33 written notice of the person's right to appeal under Subsection (c)
1-34 of this section.
1-35 (c) [(b)] In the event any person insured or applying for
1-36 insurance is aggrieved by the final action of the board of
1-37 directors of the association, the aggrieved party may, within 30
1-38 days after such action, make a written request to the commissioner
1-39 for a hearing thereon. The commissioner shall hear the appeal from
1-40 an act, ruling, or decision of the association, within 30 days
1-41 after receipt of such request or appeal and shall give not less
1-42 than 10 days' written notice of the time and place of hearing to
1-43 the person, or his duly authorized representative, appealing from
1-44 the act, ruling, or decision of the board of directors of the
1-45 association. Within 30 days after such hearing, the commissioner
1-46 shall affirm, reverse, or modify the act, ruling, or decision
1-47 appealed to the commissioner. Pending such hearing and decision
1-48 thereon, the commissioner may suspend or postpone the effective
1-49 date of the rule or of the act, ruling, or decision appealed.
1-50 (d) The association, or the person aggrieved by any order or
1-51 decision of the commissioner, may thereafter appeal in accordance
1-52 with Article 1.04 of this code. At the time the person is notified
1-53 of the decision of the commissioner, the commissioner shall provide
1-54 to the person written notice of the person's right to appeal under
1-55 this subsection.
1-56 SECTION 2. This Act takes effect September 1, 1999.
1-57 SECTION 3. The importance of this legislation and the
1-58 crowded condition of the calendars in both houses create an
1-59 emergency and an imperative public necessity that the
1-60 constitutional rule requiring bills to be read on three several
1-61 days in each house be suspended, and this rule is hereby suspended.
1-62 * * * * *