07 LC 37
0318
House
Bill 378
By:
Representatives Mumford of the
95th,
Lunsford of the
110th,
Holt of the
112th,
Bearden of the
68th,
Powell of the
29th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 9 of Title 33 of the Official Code of Georgia Annotated, relating
to regulation of rates, underwriting rules, and related organizations with
regard to insurance, so as to enact the "Medical Malpractice Insurance Reform
Act"; to provide a short title; to require medical malpractice insurers to file
rates, rating plans, rating systems, and underwriting rules; to require that
medical malpractice insurers develop rates based on each insurer´s
experience in this state; to provide for the content of experience filings; to
prohibit the retention of excess loss reserves; to require medical malpractice
insurers to file certain reports and information; to provide for a summary
report to the General Assembly by the Commissioner of Insurance and the contents
thereof; to authorize the Commissioner to promulgate certain rules and
regulations; to provide for public hearings in connection with certain medical
malpractice insurance filings; to provide for an effective date; to repeal
conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
This
Act shall be known and may be cited as the "Medical Malpractice Insurance Reform
Act."
SECTION
2.
Chapter
9 of Title 33 of the Official Code of Georgia Annotated, relating to regulation
of rates, underwriting rules, and related organizations with regard to
insurance, is amended by revising subsection (b) of Code Section 33-9-21,
relating to maintenance and filing of rates, rating plans, rating systems, and
underwriting rules, as follows:
"(b)(1)
Any domestic, foreign, or alien insurer that is authorized to write insurance in
this state must file with the Commissioner any rate, rating plan, rating system,
or underwriting rule for all personal private passenger motor vehicle insurance
and medical
malpractice insurance. No such rate,
rating plan, rating system, or underwriting rule will become effective, nor may
any premium be collected by any insurer thereunder, unless the filing has been
received by the Commissioner in his or her office and such filing has been
approved by the Commissioner or a period of 45 days has elapsed from the date
such filing was received by the Commissioner during which time such filing has
not been disapproved by the Commissioner. The Commissioner shall be authorized
to extend such 45 day period by no more than 55 days at his or her discretion.
If a filing is disapproved, notice of such disapproval order shall be given
within 100 days of receipt of filing by the Commissioner, specifying in what
respects such filing fails to meet the requirements of this chapter. The filer
shall be given a hearing upon written request made within 30 days after the
issuance of the disapproval order, and such hearing shall commence within 30
days after such request unless postponed by mutual consent. Such hearing, once
commenced, may be postponed or recessed by the Commissioner only for weekends,
holidays, or after normal working hours or at any time by mutual consent of all
parties to the hearing. The Commissioner may also, at his or her discretion,
recess any hearing for not more than two recess periods of up to 15 consecutive
days each. In connection with any hearing or judicial review with respect to
the approval or disapproval of such rates, the burden of persuasion shall fall
upon the affected insurer or insurers to establish that the challenged rates are
adequate, not excessive, and not unfairly discriminatory. After such a hearing,
the Commissioner must affirm, modify, or reverse his or her previous action
within the time period provided in subsection (a) of Code Section 33-2-23
relative to orders of the Commissioner. The requirement of approval or
disapproval of a rate filing by the Commissioner under this subsection shall not
prohibit actions by the Commissioner regarding compliance of such rate filing
with the requirements of Code Section 33-9-4 brought after such approval or
disapproval.
(2)
Each domestic, foreign, and alien insurer writing or authorized to write medical
malpractice insurance in this state shall develop and establish rates based upon
each individual insurer´s experience in this state. All such filings shall
include the total number of claims made and the total dollar amount paid out on
claims in Georgia during the preceding reporting period and any other data and
information required by the Commissioner. In establishing and maintaining loss
reserves, no medical malpractice insurer shall be allowed to maintain any excess
loss reserve for any claim or potential claim for more than 90 days after the
amount of liability for such claim or potential claim has been established,
whether by final judgment, settlement agreement, or otherwise. This limitation
on the maintenance of loss reserves shall be enforced through this Code section
as well as through Code Section 33-9-23, relating to examination of insurers.
The Commissioner is authorized to accept such rate classifications as are
reasonable and necessary for compliance with this chapter.
(3)
As used in paragraph (2) of this subsection, the term 'excess loss reserve'
means any reserve amount in excess of the industry´s standard or reserve
otherwise required by
law."
SECTION
3.
Said
chapter is further amended by adding new Code Sections 33-9-21.3 and 33-9-21.4
to read as follows:
"33-9-21.3.
(a)
Every domestic, foreign, and alien insurer providing medical malpractice
insurance to a health care provider in this state and every health care provider
in this state who maintains professional liability coverage through a plan of
self-insurance shall submit to the Commissioner a report of all claims,
including both open claims and closed claims filed during the reporting period,
for medical malpractice made against any of its insureds in this state during
the preceding three-month period.
(b)
The report provided for in subsection (a) of this Code section shall be in
writing and include claim specific data including the amounts paid on each
medical malpractice claim and other details of those payments as prescribed by
the Commissioner. Said reports shall include the following:
(1)
The number of claims made, other than claims made in lawsuits, listed by the
type of provider and an indication of specialty, if any;
(2)
The number of lawsuits filed, listed by the type of provider and an indication
of specialty, if any;
(3)
The amount paid on claims, other than claims made in lawsuits. To the extent
possible, the information submitted should identify separate amounts paid for
economic damages, noneconomic damages, and punitive damages in personal injury
claims, as well as separate amounts for economic value and intangible value of
life in wrongful death claims arising out of medical malpractice;
and
(4)
The amount paid on claims made in lawsuits, with a separate list of amounts paid
by settlement and amounts paid pursuant to a judgment. To the extent possible,
the information submitted should also identify separately the amounts paid for
economic damages, noneconomic damages, and punitive damages in personal injury
claims, as well as separate amounts paid for economic value and intangible value
of life in wrongful death claims arising out of medical
malpractice.
(c)
The Commissioner shall provide to the General Assembly in accordance with Code
Section 33-2-8.1 an annual summary of the information contained in the reports
submitted under this Code section.
(d)
The Commissioner shall by rule or regulation promulgated not later than
July 1, 2007, establish the form of the report required to be filed in
accordance with this Code section, including the manner of reporting the
elements of the report. The Commissioner is authorized to promulgate rules and
regulations to require such reports to include information in addition to that
specified in this Code section.
33-9-21.4.
When
a rate filing of a medical malpractice insurer submitted under subsection (b) of
Code Section 33-9-21 will result in an increase of more than 10 percent, the
Commissioner shall notify the public of the rate increase and shall hold a
public hearing as to the appropriateness of the rate increase. The hearing
shall be conducted in accordance with the provisions of Chapter 2 of this title.
Any interested person or group may participate in any hearing held pursuant to
this Code section."
SECTION
4.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
5.
All
laws and parts of laws in conflict with this Act are repealed.