78R2815 AKH-D

By:  Smithee                                                      H.B. No. 2259



A BILL TO BE ENTITLED

AN ACT

relating to the policy terms for medical malpractice liability 
insurance written by the Texas Medical Liability Insurance 
Underwriting Association.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 4(a)(2), Article 21.49-3, Insurance 
Code, is amended to read as follows:
		(2) If the association determines that the applicant 
meets the underwriting standards of the association as prescribed 
in the plan of operation and there is no unpaid, uncontested 
premium, policyholder stabilization reserve fund charge, or 
assessment due from the applicant for prior insurance (as shown by 
the insured having failed to pay or make written objection to such 
charges within 30 days after billing) then the association, upon 
receipt of the premium and the policyholder stabilization reserve 
fund charge, or such portion thereof as is prescribed in the plan of 
operation, shall cause to be issued a policy of medical liability 
insurance for a term of one year or less, as determined by the 
association.
	SECTION 2.  This Act takes effect September 1, 2003, and 
applies only to an insurance policy that is delivered, issued for 
delivery, or renewed on or after January 1, 2004.  A policy that is 
delivered, issued for delivery, or renewed before January 1, 2004, 
is governed by the law as it existed immediately before the 
effective date of this Act, and that law is continued in effect for 
that purpose.