SRC-JEC S.B. 1682 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1682
78R6803 AJA-DBy: Gallegos
State Affairs
4/4/2003
As Filed


DIGEST AND PURPOSE 

Currently, licensed admitted insurance carriers, which write approximately
30 percent of the medical malpractice insurance in Texas, are not
rate-regulated and are therefore not required to file rate information
with the commissioner of insurance (commissioner).  As proposed, S.B. 1682
requires medical malpractice insurers to get rates approved by the
commissioner before using the rates.  It allows for automatic approval of
a rate if the commissioner does not affirmatively approve or disapprove it
on or before the 60th day after the rate is filed. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Article 5.13-2, Insurance Code, by adding Section 5A,
as follows: 

Sec. 5A.  FILING AND APPROVAL OF RATES FOR PROFESSIONAL LIABILITY
INSURANCE FOR PHYSICIANS AND HEALTH CARE PROVIDERS.  (a)  Specifies
insurers to which this section applies. 

(b)  Prohibits an insurer, notwithstanding Section 4(b), Article 5.15-1 of
this code, or any other law, from using a rate for professional liability
insurance for physicians or health care providers before the rate is filed
under Section 5 of this article and approved by the commissioner of
insurance (commissioner).  Prohibits the commissioner from approving a
rate under this subsection unless the rate complies with the requirements
of this article and Article 5.15-1. 

(c)  Provides that if the commissioner does not affirmatively approve or
disapprove a rate on or before the 60th day after the date the rate is
filed, the rate is considered approved on the 61st day after the rate
filing. 

SECTION 2.  Repealer:  Article 21.49-4(g) (relating to filing rates and
forms with the State Board of Insurance), Insurance Code. 

SECTION  3.  Makes application of this Act prospective to January 1, 2004.

SECTION 4.  Effective date:  September 1, 2003.