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.