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A BILL TO BE ENTITLED
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AN ACT
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relating to the reporting of information to the Texas Department of |
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Insurance by certain insurance carriers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 12, Insurance Code, is amended by adding |
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Chapter 3504 to read as follows: |
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CHAPTER 3504. INFORMATION CONCERNING PROFESSIONAL LIABILITY |
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INSURANCE |
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Sec. 3504.001. DEFINITIONS. (a) In this chapter |
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"Professional Liability Insurance" means a type of liability |
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insurance that covers: |
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(1) legal liability for damages due to injuries to |
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other persons, damage to their property, or other damage or loss to |
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such other persons (including the expenses of litigation and |
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settlement) resulting from or arising out of any tortuous act, |
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error, or omission of the covered individual in common law, |
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statutory, or constitutional causes of action while in performance |
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of such individual's official duties. |
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(2) the cost of legal representation for the covered |
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individual in connection with any administrative or judicial |
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proceeding (including any investigation or disciplinary |
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proceeding) relating to any act, error, or omission of the covered |
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individual while in performance of such individual's official |
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duties. |
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(b) "Issuer" means an insurance company, reciprocal or |
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interinsurance exchange, mutual insurance company, capital stock |
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company, county mutual insurance company, Lloyd's plan, or other |
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legal entity authorized to write professional liability insurance |
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policies in this state. |
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(c) "Rate" means the cost of insurance per exposure unit, |
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whether expressed as a single number or as a prospective loss cost, |
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with an adjustment to account for the treatment of expenses, |
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profit, and individual insurer variation in loss experience, and |
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before any application of individual risk variations based on loss |
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or expense considerations. |
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Sec. 3504.002. REPORT. (a) Each Professional Liability |
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issuer authorized to issue professional liability insurance |
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polices in this state shall submit a report to the department |
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containing rates, profit margins, the total number of claims paid, |
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the number of claims filed, exclusions in coverage, and the types of |
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coverage being offered. |
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(b) If the department determines that the information filed |
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by an insurer under this chapter is incomplete or otherwise |
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deficient, the department may request additional information from |
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the insurer. |
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(c) The commissioner shall adopt rules necessary to |
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implement this section, including rules concerning any applicable |
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reporting period and the form of the report required in subsection |
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(a). |
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Sec. 3504.003. INTERNET POSTING; CONSUMER HOTLINE. (a) |
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The department shall post on the department's Internet website: |
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(1) the information contained in the reports received |
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under Section 3504.002; and |
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(2) The department shall operate a toll-free telephone |
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hotline to respond to consumer inquiries concerning professional |
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liability insurance. |
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SECTION 2. The commissioner of insurance shall adopt rules |
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under Section 3504.002(c), Insurance Code, as added by this Act, |
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not later than January 1, 2010. The rules must require Professional |
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Liability issuers to submit the first report under Section |
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3504.002, Insurance Code, as added by this Act, not later than April |
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1, 2010. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |