S.B. 339 78(R)    BILL ANALYSIS


S.B. 339
By: Nelson
Insurance
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

The Texas Medical Liability Insurance Underwriting Association, commonly
known as the JUA, was created to provide a means for physicians and health
care providers to obtain medical liability insurance when such coverage is
not available in the admitted market.  Currently, all medical malpractice
liability insurance policies written by the JUA are written on an annual
basis.  However, some physicians need temporary coverage from the JUA
while they attempt to secure insurance in the admitted voluntary market.
S.B. 339 allows the JUA to issue medical liability insurance policies for
terms of less than one year in duration and to offer installment payment
plans. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

Senate Bill 339 amends the Insurance Code to allow the Medical Liability
Insurance Underwriting Association (association) to issue policies for a
term of less than one year.  The bill authorizes the association to offer
an installment payment plan for coverage.  The bill provides that notice
of cancellation or nonrenewal provisions for professional liability
insurance for physicians and health care providers do not apply to
policies issued by the association for less than one year.  The bill sets
forth requirements for the association relating to notices of premium
increases and cancellation and nonrenewal of policies.  

The bill authorizes the association to permit payments of stabilization
reserve fund charges for nursing homes and physicians and health care
providers on an installment basis or to require the payment of charges as
an annual lump sum, if the association offers an installment payment plan
for coverage. 

EFFECTIVE DATE

September 1, 2003.