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SECOND REGULAR SESSION
HOUSE BILL NO. 2071
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE PHELPS.
4823H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o repeal section 383.155, RSMo, and to enact in lieu thereof one new section relating to the
medical malpractice joint underwriting association.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 383.155, RSMo, is repealed and one new section enacted in lieu
2 thereof, to be known as section 383.155, to read as follows:
383.155. 1. A joint underwriting association may be created , or dir ected to res ume
2 operations, upon determination by the director after a public hearing that medical
3 malpractice liability insurance is not reasonably available for health care providers in the
4 voluntary market. The association shall contain as members all companies authorized to
5 write and engaged in writing, on a direct basis, any insurance or benefit, the premium for
6 which is included under the definition of "net direct premiums". Membership in the
7 association shall be a condition of continued authority to do business in this state.
8 2. A plan of operation shall be adopted to be ef fective concurrently with the ef fective
9 date of the association.
10 3. The association shall, pursuant to the provisions of sections 383.150 to 383.195
11 and the plan of operation, with respect to medical malpractice insurance, have the authority
12 on behalf of its members:
13 (1) T o issue, or to cause to be issued, policies of insurance to applicants, including
14 incidental coverages and subject to limits as specified in the plan of operation but not to
15 exceed one million dollars for each claimant under one policy and three million dollars for all
16 claimants under one policy in any one policy year;
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
17 (2) T o underwrite such insurance and to adjust and pay losses with respect thereto, or
18 to appoint a service company to perform those functions;
19 (3) T o assume reinsurance from its members; and
20 (4) T o cede reinsurance.
21 4. W ithin forty-five days following the creation of the association, the directors of the
22 association shall submit to the director for his or her review , a proposed plan of operation,
23 consistent with the provisions of sections 383.150 to 383.195.
24 5. The plan of operation shall provide for economic, fair and nondiscriminatory
25 administration and for the prompt and efficien t distribution of medical malpractice insurance,
26 and shall contain other provisions including, but not limited to, preliminary assessment of all
27 members for initial expenses to commence operations, establishment of necessary facilities,
28 management of the association, assessment of members to defray losses and expenses,
29 reasonable and objective underwriting standards, acceptance and cession of reinsurance,
30 appointment of a servicing company and procedures for determining amounts of insurance to
31 be provided by the association. The preliminary assessment shall be an advance to be
32 recouped under the provisions of subsection 5 of section 383.160.
33 6. The composition of the board and the terms of directors of the board shall be
34 established by the plan of operation.
35 7. The plan of operation shall be subject to approval by the director after consultation
36 with the members of the association, representatives of the public and other af fected
37 individuals and or ganizations. If the director disapproves all or any part of the proposed plan
38 of operation, the directors shall within fifteen days submit for review a revised plan of
39 operation. If the directors fail to do so, the director shall promulgate a plan of operation or
40 part thereof, as the case may be. The plan of operation approved or promulgated by the
41 director shall become ef fective and operational upon his or her order .
42 8. Amendments to the plan of operation may be made by the directors of the
43 association, subject to the approval of the director or shall be made at his direction.
44 9. There shall be no liability imposed on the part of and no cause of action of any
45 nature shall arise against any member insurer or any member of the board of directors for any
46 omission or action taken by them in the performance of their powers and duties under sections
47 383.150 to 383.195.
48 10. (1) A majority of the directors of the board may suspend the operations of
49 an association creat ed under this section if the board of dir ectors determine that
50 medical malpractice insurance is reas onably available to health care pr oviders in the
51 voluntary market and ther e are two or fewer individual physicians insur ed annually by
52 the association for at least two consecutive years.
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53 (2) Suspension of operations of the association shall be in accordance with the
54 association's plan of operation, or any amendment ther eto. The association's plan of
55 operation shall establish the pr ocess for suspension of operations and include pr ovisions
56 for the administration of association funds until the dir ector determines either to
57 r esume operations under subsection 1 of this section or to terminate operations in
58 compliance with section 383.195.
59 (3) During any period of suspension, the association shall not collect dues or fees
60 fr om its members unless and until the dir ector authorizes an assessment or authorizes
61 the res umption of operations under this section.
62 1 1. As used in this section, "rea sonably available" shall mean that medical
63 malpractice insurance pr oducts are offer ed to health care pro viders in the voluntary
64 market by insurance carriers in the ordinary course of business.
✔
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