2010 -- H 7647

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LC01782

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2010

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A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- DEPARTMENT OF BUSINESS

REGULATIONS -- MALPRACTICE INSURANCE

     Introduced By: Representative Michael J. Marcello

     Date Introduced: February 25, 2010

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 42-14-2.1 and 42-14-2.2 of the General Laws in Chapter 42-14

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entitled "Department of Business Regulation" are hereby amended to read as follows:

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     42-14-2.1. Reporting by certain insurers -- Settlements. -- (a) Every insurer providing

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professional liability insurance to licensed physicians, dentists, or dental hygienists health care

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professionals and nursing homes shall send a complete report to the board of medical licensure

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and discipline established pursuant to chapter 37 of title 5, or the board of examiners in dentistry

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established pursuant to chapter 31.1 of title 5 and the department of business regulation director

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of health as to any claim, notice, settlement, judgment, or arbitration award of a claim or action

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for damages for death or personal injury caused by such person's negligence, error, or omission in

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practice or his or her rendering of unauthorized professional services. The report shall be sent

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within thirty (30) days after service of such arbitration award on the parties or notice of the claim,

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settlement, judgment, or arbitration award.

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      (b) Notwithstanding any other provision of law, an insurer shall have the contractual

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right to settle any claim up to the limits of the policy without the insured's consent, unless the

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policy by its express terms prohibits the insurer from settling any claim without the consent of the

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insured.

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      (c) All insurers doing business in the state of Rhode Island in liability insurance for

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health care professionals and nursing homes, dentists, or dental hygienists shall file an annual

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report with the commissioner of insurance director of health. This report must be filed for each

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year by March 1 of the next year. The information required for each year shall include:, for each

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rating class:

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      (1) The number of insured;

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      (2) The total premiums paid;

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      (3) The total number of claims made, the years in which the incidents giving rise to the

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claims occurred, and the total number of those claims outstanding at the end of the year;

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      (4) The total amount of claims paid, the years in which the incidents giving rise to the

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claims occurred, and the amount of the costs which can be identified with these claims for

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investigation, processing, and defense of these claims; and

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      (5) The number of lawsuits filed.

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     42-14-2.2. Reporting -- Court judgments against licensed physicians, dentists, or

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dental hygienists Reporting -- Court judgments against licensed health care professionals. --

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Within ten (10) days after a judgment by a court of this state that a licensed physician, dentist, or

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dental hygienist health care professionals and nursing homes has committed a crime or is civilly

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liable for any death or personal injury caused by his or her negligence, error or omission in

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practice, or his or her rendering unauthorized professional services, the clerk of the court which

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rendered the judgment shall report the same to the board of medical licensure and discipline

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established pursuant to chapter 37 of title 5 or the board of examiners in dentistry established

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pursuant to chapter 31.1 of title 5 and the department of business regulation director of health.

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     SECTION 2. Section 42-14.1-2 of the General Laws in Chapter 42-14.1 entitled

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"Department of Business Regulation - Medical Malpractice Insurance" is hereby amended to read

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as follows:

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     42-14.1-2. Malpractice insurance. -- (a) The director of business regulation shall

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promulgate rules and regulations requiring all licensed medical and dental professional and all

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licensed health care providers to be covered by professional liability insurance insuring the

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practitioner for claims of bodily injury or death arising out of malpractice, professional error, or

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mistake. The director of the department of business regulation is hereby authorized to promulgate

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regulations establishing the minimum insurance coverage limits which shall be required;

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provided, however, that such limits shall not be less than one hundred thousand dollars

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($100,000) for claims arising out of the same professional service and three hundred thousand

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dollars ($300,000) in the aggregate. The director of the department of business regulation is

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further authorized to establish rules and regulations allowing persons or entities with sufficient

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financial resources to be self-insurers.

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      (b) Every licensed health care provider in direct patient care within a licensed hospital

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shall obtain liability insurance in a minimum amount determined by the board of trustees of that

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hospital. Physicians, physicians assistants, nurse practitioners, dentists and podiatrists involved

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in the clinical practice of medicine to include clinical radiology, pathology and/or laboratory

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medicine shall maintain minimum insurance coverage limits which shall be required; provided,

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however, that such limits shall not be less than one million dollars ($1,000,000) for claims arising

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out of the same professional service and three million dollars ($3,000,000) in the aggregate, and

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may be increased in rules and regulations. The director of health is further authorized to establish

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rules and regulations for medical malpractice insurance minimums for other health care

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providers.

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     SECTION 3. Section 27-16-2.6 of the General Laws in Chapter 27-16 entitled

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"Unauthorized Insurance Business" is hereby amended to read as follows:

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     27-16-2.6. Hospitals affiliated with accredited medical schools -- Indemnification of

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personnel. -- Nothing in sections 27-16-1.2 -- 27-16-2.2 shall be construed to limit or prevent

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hospitals affiliated with an accredited medical school from agreeing to indemnify hospital

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employees, and physicians, including physicians' incorporated or unincorporated practices and

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employees, and medical, nursing, or allied health students affiliated with the hospital, collectively

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"covered persons", for the legal liability of those covered persons for loss, damage, or expense

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incident to claims of bodily injury or death arising out of medical malpractice or professional

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error or mistake, "malpractice coverage", whether the hospital charges the covered persons for

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malpractice coverage or not. The hospitals making the agreements shall be required to establish

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and maintain a reserve fund with which the malpractice coverage will be provided, which may be

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either part of or separate from a self-insurance fund maintained by or on behalf of the hospital.

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Any self-insurance fund shall annually provide a certified financial statement with actuarial

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projections as to the soundness of its reserving to the director of the department of health and the

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director of the department of business regulation. The malpractice coverage provided by the

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agreements shall be in amounts which meet the minimum insurance coverage limits required by

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any regulation promulgated by the director of business regulation pursuant to section 42-14.1-2 or

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any regulation promulgated thereunder.

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     SECTION 4. This act shall take effect upon passage.

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LC01782

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- DEPARTMENT OF BUSINESS

REGULATIONS -- MALPRACTICE INSURANCE

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     This act would require a list of all settlements or judgments against all licensed health

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care professionals and nursing homes be reported to the director of health. It would also provide

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parameters within which the director of health may establish regulations for malpractice

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minimums.

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     This act would take effect upon passage.

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LC01782

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