Amend Floor Amendment No. 25 to CSHB 4 by Rose by adding a new 
SECTION _____ .01 on page 1 between lines 5 and 6 to read as follows 
and renumber subsequent SECTIONS accordingly:
	"SECTION _____ .01. Section 3, Article 5.15-1, Insurance 
Code, is amended by amending Subsection (d) and adding Subsections 
(e) - (g) to read as follows:
	(d) Rates shall be reasonable and promote the continued 
availability of professional liability coverage for physicians and 
health care providers through stability from year to year. Rates 
may [and shall] not be excessive or inadequate, as defined in this 
subsection, or [nor shall they be] unfairly discriminatory.  No 
rate shall be held to be excessive unless the rate is unreasonably 
high for the insurance coverage provided [and a reasonable degree 
of competition does not exist in the area with respect to the 
classification to which the rate is applicable].  No rate shall be 
held to be inadequate unless the rate is unreasonably low for the 
insurance coverage provided and is insufficient to sustain 
projected losses and expenses; or unless the rate is unreasonably 
low for the insurance coverage provided and the use of the rate has 
or, if continued, will have the effect of destroying competition or 
creating a monopoly.
	(e) After notice and hearing, the commissioner shall 
establish a system of rate classifications for professional 
liability insurance for physicians and health care providers, based 
on risk factors, and require an insurer, a self-insurance trust 
authorized under Article 21.49-4 of this code, and the joint 
underwriting association established under Article 21.49-3 of this 
code to use those classifications.  The commissioner shall classify 
rates based on the following factors and prescribe and respective 
weight to be given each factor:
		(1) the impact of risk management courses taken by 
physicians and health care providers in this state;
		(2) the insured's medical or health care 
specialization;             
		(3) the insured's certification by any certification 
entity approved by the American Board of Medical Specialities; 
		(4) the number of years of medical experience the 
insured has had after graduating from an approved medical school or 
residency program, if applicable;
		(5) the frequency and amount of indemnity payments made 
by or on behalf of the insured for any death, injury, or medical or 
health care incident in which the insured was determined to be 
primarily at fault;
		(6) the medical disciplinary history of the insured as 
recorded by the Texas State Board of Medical Examiners or a similar 
licensing body in another state, if applicable; and
		(7) any other factor substantially related to the risk 
of loss adopted by the commissioner by rule.
	(f) The commissioner by rule shall establish a good doctor 
discount program for physicians who have few indemnity payments 
relative to others in their specialty.  The commissioner may 
establish other eligibility factors directly related to the risk of 
loss and quality of patient care.
	(g) The rate charged for a good doctor discount policy must:            
		(1) comply with Subsection (e) of this section; and                    
		(2) be an appropriate reduction, as determined by the 
commissioner."