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79R7528 AJA-D

By:  Hopson                                                       H.B. No. 1665



A BILL TO BE ENTITLED

AN ACT

relating to a study of the effectiveness of rate regulation for 
medical malpractice insurance.
	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.  RATE STUDY.  (a)  The department shall perform a 
study of the rates charged for professional liability insurance or 
coverage for physicians and health care providers in this state on 
and after September 1, 2005, and before August 1, 2006, to determine 
the effectiveness of legislation enacted by the 78th Legislature, 
Regular Session, 2003, relating to regulation of rates for 
professional liability insurance or coverage for physicians and 
health care providers and tort liability of physicians and health 
care providers, in ensuring that those rates are not unreasonably 
high for the insurance coverage provided or unreasonably low for 
the insurance coverage provided and insufficient to sustain 
projected losses and expenses.
	(b)  To perform the study required by this section, the 
department may use any information filed by an insurer under this 
code.  The commissioner may request that an insurer provide any 
additional information that would assist the department in 
performing the study.  The commissioner shall request that the 
joint underwriting association established under Article 21.49-3 
of this code, any self-insurance trust organized under Article 
21.49-4 of this code, and any other person or entity offering or 
providing professional liability insurance or coverage for 
physicians and health care providers in this state provide 
sufficient information to assist the department in fully analyzing 
the effect of the legislation described by Subsection (a) of this 
section on rates for professional liability insurance or coverage 
for physicians and health care providers.
	(c)  On the third anniversary of the passage of the 
constitutional amendments concerning civil lawsuits against 
doctors and health care providers (Proposition No. 12, September 
13, 2006), the commissioner shall:
		(1)  provide a written report to the governor, the 
lieutenant governor, and the speaker of the house of 
representatives of the results of the study, specifying databases 
used, methodology employed, and any actuarial assumptions made in 
the creation of the report, identifying each person or entity to 
whom the department made a request under Subsection (b) of this 
section who refused or otherwise did not comply with the request, 
and providing the department's recommendations for any statutory 
changes that would more effectively ensure that rates for 
professional liability insurance or coverage for physicians and 
health care providers are not unreasonably high for the insurance 
coverage provided or unreasonably low for the insurance coverage 
provided and insufficient to sustain projected losses and expenses; 
and
		(2)  post the report on the department's Internet 
website.           
	(d)  This section expires September 1, 2007.                            
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.