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  Article 21.49–4(g), Insurance Code, is repealed.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.