79R2780 AJA-D

By:  Rose                                                         H.B. No. 686



A BILL TO BE ENTITLED

AN ACT

relating to the use of certain factors in determining premiums 
charged for professional liability insurance for physicians and 
health care providers.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Article 5.15-1, Insurance Code, is amended by 
adding Section 12 to read as follows:
	Sec. 12.  USE OF CERTAIN LAWSUITS IN UNDERWRITING; REFUND. 
(a)  An insurer may not consider a lawsuit filed against a physician 
or health care provider for the purpose of setting premiums for the 
physician or provider's professional liability insurance if the 
lawsuit was dismissed by the claimant or non-suited.
	(b)  An insurer that considers a lawsuit filed against a 
physician or health care provider in setting premiums for the 
physician or provider's professional liability insurance shall 
refund to the physician or provider any increase in premiums paid by 
the physician or provider that is attributable to that lawsuit if 
the lawsuit is dismissed by the claimant or non-suited.  The insurer 
shall issue the refund on or before the 30th day after the date the 
insurer receives written evidence that the lawsuit was dismissed or 
non-suited.
	SECTION 2.  The change in law made by this Act applies only 
to an insurance policy delivered, issued for delivery, or renewed 
on or after January 1, 2006.  An insurance policy issued before 
January 1, 2006, is governed by the law in effect immediately before 
the effective date of this Act, and that law is continued in effect 
for that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.