78R6803 AJA-D
By: Coleman H.B. No. 3406
A BILL TO BE ENTITLED
AN ACT
relating to rates for professional liability insurance for
physicians and health care providers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Article 5.13-2, Insurance Code, is amended by
adding Section 5A to read as follows:
Sec. 5A. FILING AND APPROVAL OF RATES FOR PROFESSIONAL
LIABILITY INSURANCE FOR PHYSICIANS AND HEALTH CARE PROVIDERS. (a)
This section applies to any insurer authorized to write
professional liability insurance for physicians and health care
providers in this state, including a Lloyd's plan, a reciprocal or
interinsurance exchange, the joint underwriting association
established under Article 21.49-3 of this code, and a
self-insurance trust established under Article 21.49-4 of this
code.
(b) Notwithstanding Section 4(b), Article 5.15-1 of this
code, or any other law, an insurer may not use 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. The commissioner may not approve
a rate under this subsection unless the rate complies with the
requirements of this article and Article 5.15-1 of this code.
(c) If the commissioner does not affirmatively approve or
disapprove a rate filed under this section on or before the 60th day
after the date the rate is filed, the rate is considered approved on
the 61st day after the date the rate is filed.
SECTION 2. Article 21.49–4(g), Insurance Code, is repealed.
SECTION 3. This Act applies only to rates applicable to
professional liability insurance for physicians or health care
providers that is delivered, issued for delivery, or renewed on or
after January 1, 2004. Rates applicable to insurance 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.
SECTION 4. This Act takes effect September 1, 2003.